Internet Computer price has broken out of a descending trendline that had been acting as resistance on the daily chart, which has opened the door for potential gains as high as $10 in the coming weeks.
Summary
- Internet Computer price shot up nearly 70% on Wednesday.
- Dfinity revealed that its AI platform Caffeine now supports image and code prompts.
- The token’s price has confirmed a breakout from a descending trendline that had been capping upside moves since the beginning of this year.
According to data from crypto.news, Internet Computer (ICP) rallied 68% to an intraday high of $6.32 before settling at $5.14 at press time. At this price, the token remains 76% higher than its monthly low. Despite this, it is still down 58% from its yearly high of $12.32.
The surge followed after Dfinity Foundation, a Swiss-based non-profit backing the decentralized computing protocol, confirmed the extended public release of its AI platform called Caffeine on Nov. 4, which allows users to build decentralized AI applications from scratch.
The model, which previously supported only text input, has now added image and code prompts, enabling multi-modal functionality and broader use cases for developers and creators.
According to CoinGecko, ICP’s trading volume jumped by 170% over the past 24 hours. At the same time, data from CoinGlass shows that open interest in ICP futures climbed 10% to $137.76 million, while futures trading volume surged 126% to hit $2.68 billion. Such a combination of metrics suggests that the rally was mainly driven by intraday catalysts that may have motivated leveraged traders to chase quick upside gains.
Meanwhile, strong underlying fundamentals have further supported ICP’s rally. According to data from DeFiLlama, the total value locked across DeFi protocols on the network has jumped 22.5% in the past 24 hours, reaching $37.9 million. Meanwhile, the market cap of stablecoins circulating on the Internet Computer has risen 13.5% over the last 7 days to around $4.5 million.
When taken together, these metrics can be inferred as a sign that investor confidence in the ecosystem’s utility is strong, and it could continue to lend further support to the recent uptrend.
ICP price has broken out of a descending trendline that had been acting as resistance since its December 2024 high. By clearing this long-held resistance, ICP has flipped a key technical barrier, which could potentially end its multi-month downtrend and lay the foundation for a more sustained upside.
Other technical indicators also seem to favor the bulls. Both the MACD lines are widening bullishly, and the RSI has turned upward, suggesting building momentum and growing buyer conviction.
Based on these technical signals, the next likely target for ICP lies in the $10–$11 zone, a region that acted as a strong resistance multiple times throughout last year. A breakout into this range would also mark a clean exit from a multi-year falling wedge, a classic bullish reversal pattern, potentially paving the way for larger long-term gains.
On the downside, $5 serves as immediate support on a psychological and historical level. If that fails, ICP could revisit the $2.80 zone, which acted as a key base during its previous bottoming phase.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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