Internet Computer (ICP) staged a volatile session, testing support at $4.83 before rallying to $5.05 and then slipping back below $4.90. The move highlighted a tight trading corridor and sharp intraday flows that traders should note.
CoinDesk Research data shows volume clustered at 348,793 units around the $4.83 level, confirming that area as a meaningful accumulation zone. The rally hit resistance at $5.05 where concentrated distribution capped gains. A rapid reversal saw prices consolidate near $4.97, spike briefly to $4.99, then fall to a new short-term pivot at $4.93 within minutes—an action accompanied by over 170,000 units transacted in a two-minute window, signaling likely systematic liquidations or stop-loss triggers.
Beyond price action, the network’s recent software update matters: on Sept. 4 the Internet Computer reached the Ignition milestone, enabling large language models (LLMs) to run natively on-chain. That technical leap makes it easier to build AI-powered decentralized applications that can, for example, generate smart contracts from natural-language prompts—part of a long-term vision for a more user-friendly “self-writing Internet.”
What to watch: on-chain developer activity, new AI dapp launches, and sustained volume. A clean breakout above $5.05 on rising volume would support a bullish case; repeated liquidation spikes would favor further downside.
For traders, the immediate levels are clear: $4.83 as support and $5.05 as the critical resistance for any sustained breakout. A hold above $4.93 could provide a base for renewed upside, but failure to reclaim $5.05 would likely keep ICP range-bound.
Risk-aware readers should note that short, volatile moves—especially those tied to concentrated volume and liquidations—can result in amplified losses. The new on-chain LLM capability raises product and security questions that will unfold as developers deploy AI dapps.
Why this matters: The Ignition upgrade expands Internet Computer’s use cases beyond traditional smart contracts and could attract developers focused on on-chain AI, which would affect long-term fundamentals even if near-term price action remains choppy.
Source: CoinDesk. Read the original coverage for full details.