ICP breaks below key $4 support level
Internet Computer’s ICP token dropped sharply over the last day, losing about 7.3% of its value. The decline pushed the price below the $3.99 to $4.00 support band that traders had been watching. At the time of writing, ICP was trading around $3.70, though it dipped even lower during the worst of the selling.
The breakdown happened with significant volume behind it. According to the data, about 1.83 million tokens changed hands when the price fell through $4. That’s roughly three times the normal trading volume for recent periods. The heaviest selling pressure came around 23:00 UTC on November 30, creating what technical analysts might call a “high-volume flush.”
Price finds temporary footing
After the initial drop, ICP found some stability in the $3.55 to $3.65 range. The token managed to bounce back slightly to the $3.69 to $3.70 area, but I think it’s important to note that this recovery hasn’t really changed the overall picture. The broader structure still looks weak, with what appears to be a series of lower highs on the chart.
What was once support at $4 has now become resistance. That’s a classic technical pattern—when a level that previously held prices up gets broken, it often becomes a ceiling that prevents prices from moving back up. Traders who bought near $4 are now underwater, and they might be looking to sell if the price approaches that level again.
Volume tells part of the story
Total volume for the period reached 6.85 million tokens, which is among the higher readings for ICP in recent days. High volume during a breakdown typically suggests stronger conviction among sellers. It’s not just a few people exiting positions—there’s real selling pressure.
After the initial drop, the price entered a period of narrow consolidation between $3.645 and $3.700. There was a small lift that coincided with a localized volume uptick, but this seems more like temporary stabilization than a meaningful reversal.
The bigger picture remains uncertain
While the immediate selling pressure has eased, the technical setup still favors the bears. The clean series of lower highs suggests that each rally attempt has been weaker than the last. Without a move back above that former $4 support-turned-resistance, the path of least resistance appears to be lower.
Some traders might see the current levels as potential entry points, but I’d be cautious. The volume patterns and technical structure suggest this could be more than just a routine pullback. Markets have a way of testing levels multiple times, so we might see another attempt to reclaim $4, but the failed support there makes that a difficult task.
It’s worth remembering that crypto markets can shift quickly. What looks like a breakdown today might look different tomorrow if broader market sentiment improves. But based on the current data, ICP faces headwinds in the near term.
