Internet Computer [ICP] surged 11% to a four-month high of $3.40, extending its remarkable recovery story from August lows near $2.05. According to latest reports from AMBCrypto, this latest surge represents only part of the broader recovery story, as ICP has now recovered roughly 60.4% from its August bottom in under two months. The cryptocurrency spent much of June and July moving lower before reaching its recent bottom in early August, with the recovery starting slowly before gaining momentum during September. Latest trading data shows ICP trading at $3.40 with a 24-hour trading volume of $196.8 million, reflecting continued investor interest in the recovery story. The surge was accompanied by $20,000 in short liquidations on major exchanges Binance, Bybit, and OKX, while no long positions were liquidated during the same period.
ICP's recent surge has been fueled by renewed bullish momentum amid intense debate over security measures for stolen funds. As reported by AMBCrypto, after Bitget attackers drained over $387.5 million, CEO Gracy Chen called on THORChain to refuse service to addresses linked to attackers. However, THORChain refused, stating its network mechanism is designed to protect the protocol as a whole and not to selectively freeze specific addresses. In response, Dominic, founder of DFINITY, stated he would support ICP's Network Nervous System (NNS) governance proposal to freeze stolen funds, signaling support for interchain collaboration to deter theft. This rising support for security measures has driven market demand for ICP, with the cryptocurrency flipping its short-term moving averages and approaching the $3.50 price area.
The security debate has triggered significant activity in derivatives markets, with ICP's Open Interest jumping 18% to $121 million while volume rose 66% to $189 million. According to AMBCrypto, the rising Open Interest alongside volume implied higher participation as traders opened new positions. The Long/Short Ratio on Binance rose to 1.8, with Binance Top Traders' ratios hitting 3.5 and 2.4, indicating increased speculative interest. Over the same period, the altcoin's volume rose 61%, reflecting higher market activity, while the daily turnover also made an upswing, rising to $45 million for the first time since June. This implied that the market was driven by intense buying pressure as traders positioned for potential further gains.
ICP's recent rally has encountered temporary resistance as profit-taking emerges following the surge to four-month highs. The altcoin's netflow jumped to $1.3 million, marking a reversal from -$448k the previous day, suggesting that more holders sold on exchanges as the market rebounded. As reported by AMBCrypto, this pattern often indicates rising sell-side activity during market rebounds, which can create temporary headwinds for further advances. On the technical front, ICP holds above the MA-20 and MA-50 on the hourly chart, while maintaining position well above the MA-200 on the daily timeframe. Immediate technical support is established by the Ichimoku Kijun at $3.09. Technical indicators show mixed signals, with MACD and ADX confirming strong upside momentum, while RSI reading 65.18 and both CCI and Stoch RSI indicating overbought conditions.
Current market momentum leads bullishly, with the price hike seeing ICP flip the 21-day moving averages, reflecting strong pressure to the upside. According to AMBCrypto, the +DI rose to 27 while the ADX climbed to 30, confirming a strong upward momentum. These indicators suggest that market conditions are ideal for trend continuation, with potential for ICP to extend the rally, reclaim $3.7, and eye to flip $4. However, the risk of a pullback remains, especially due to higher profit realization. If sellers overwhelm the market with buyers failing to absorb pressure, ICP will likely revisit $2.9. The cryptocurrency currently ranks 58th in market capitalization at about $1.8 billion, with a fully diluted valuation of $1.918 billion and circulating supply of 556.944 million tokens.
