Internet Computer faced a strong correction after a recent breakout sent the token higher. The market is observing its short-term direction as ICP trades near key technical levels with steady activity across exchanges.
Breakout After a Long Downtrend
Internet Computer moved out of a long descending structure after months of lower highs and lower lows. The move created a shift in price behavior and opened the door for a broad rally. The breakout formed after a clear rejection from the lower boundary of the pattern, showing a change in demand.
The chart used by market watchers displayed a 150% move from the lows. A notable tweet from Clifton Fx (@clifton_ideas) stated that ICP had been compressed inside a falling wedge before breaking out with strength. The breakout sent the price above mid-range resistance and established early signs of trend recovery.
Following the rally, ICP moved into a vertical expansion stage as sidelined liquidity re-entered the market. Traders viewed the move as a textbook reversal setup, supported by a retest of the breakout zone. Price respected that level instead of falling back into the pattern, lowering the chance of a bull trap forming at the breakout point.
Correction and Current Market Conditions
Market conditions shifted during the past 24 hours as ICP traded near $7.25, marking a decline of almost 13% on CoinMarketCap data. The correction came after short-term profit taking near the recent high above $8.50. The red move on the daily chart showed changing sentiment and ongoing recalibration following the rally.
ICP posted a $3.91 billion market cap with $1.35 billion in trading volume over the same period. The 34.7% volume-to-market-cap ratio showed that trading interest remained high through the downturn. High turnover suggested that buyers and sellers actively managed positions after the breakout.
Supply data listed the circulating and total supply at 539.58 million ICP, with no immediate token unlocks adding pressure. The model listed uncapped maximum supply. Institutional holders often watch for network utility and adoption to balance long-range issuance, making usage and activity relevant to the token’s outlook.
Network Activity and Market Focus
Crypto commentary pointed to rising wallet creation and growing on-chain participation. A social post from analyst Cryptonian noted that many new wallets were held on exchanges. Because custodial wallets are not always shown in on-chain data, some activity appears off-chart. This added attention from investors supported the idea that accumulation continued through exchanges.
The market focus turned to ICP’s behavior near the $7 level. If the price holds above that area, it may form a base for a future test of resistance around $8. If the price fails to hold, traders may watch for support near the mid-$6 level. Buyers who entered near the pattern’s lows saw low-risk entries, while late entrants may wait for structure to form with higher lows and confirmed retests.
Current conditions show that ICP remains active despite its correction. With steady volume, rising wallet numbers, and a broader recovery pattern, traders continue to observe whether the token stabilizes or extends the pullback. The next sessions are expected to guide short-term market direction.