Internet Computer (ICP) has faced significant selling pressure over the past 24 hours. The token dropped more than 6% to fall below the $3.50 support level.
This decline comes after a remarkable rally that saw ICP surge from lows of $2.80 to highs above $9.62. However, the recent market weakness has erased most of those gains.
Trading volume for ICP decreased by 29% during the latest downturn. While this suggests reduced selling pressure, the overall bearish sentiment continues to weigh on the token’s performance.
AI Platform Updates Drive Initial Rally
The DFINITY Foundation, which developed Internet Computer, focuses on creating fully on-chain applications. Their platform aims to eliminate dependence on traditional cloud providers for decentralized finance and AI services.
In early November, DFINITY announced significant updates to its AI platform called Caffeine DeAI. This news sparked intense buying interest among investors.
The announcement drove ICP’s price to surge dramatically. Bulls pushed the token to peak levels of $9.62 on November 8, representing substantial gains from previous lows.
Caffeine offers several key features that attracted investor attention:
- Easy app creation and deployment tools
- Integrated App Market for distribution
- Built-in monetization support for developers
DFINITY emphasized that Caffeine would increase network usage significantly. The foundation also projected that higher activity would help transition ICP toward becoming a deflationary asset.
Sharp Reversal Erases November Gains
Despite the initial enthusiasm, ICP’s price momentum quickly reversed course. The token has tumbled approximately 64% from its November peak to current levels around $3.50.
This dramatic decline reflects broader cryptocurrency market pressures that have affected most digital assets. The sell-off demonstrates how quickly sentiment can shift in volatile crypto markets.
Market Pressures Weigh on ICP Performance
Several factors have contributed to the widespread selling pressure across cryptocurrency markets. Macroeconomic uncertainties continue to challenge investor confidence in risk assets.
Additionally, concerns surrounding major market players like Tether and MicroStrategy have dampened appetite for Bitcoin. This negative sentiment typically spreads to altcoins like Internet Computer.
ICP’s correlation with Bitcoin remains strong, as evidenced by recent price movements. When Bitcoin dropped toward $80,000 support, Internet Computer fell from above $5.00 to below $4.20.
Currently, Bitcoin trades near $90,500 while ICP hovers around $3.51. If Bitcoin loses additional support levels, ICP could face further downside pressure.
Technical analysts note that continued weakness might push ICP toward its all-time lows of $1.98. Those levels were previously reached in October 2025 during a broader market correction.
However, several factors could support a potential recovery for Internet Computer. Network upgrades and increased adoption of DFINITY’s platform may attract new investors.
The growing interest in AI-related tokens could also benefit ICP’s long-term prospects. Additionally, rising demand for tokenized Bitcoin products might create positive spillover effects.
Ultimately, improvement in broader macroeconomic conditions will likely prove crucial for any sustained recovery in ICP’s price.
