Internet Computer (ICP) Tests $4.81 Support as Protocol Delays Spark Sell-Off

Quick Take

• ICP currently trading at $4.87 (-1.04% in 24h)
• Internet Computer’s RSI at 42.06 signals neutral momentum with bearish undertones
• Protocol upgrade delays announced August 29 triggering negative sentiment despite earlier AI partnership gains

What’s Driving Internet Computer Price Today?

The ICP price has declined following concerning news about protocol upgrade delays announced on August 29, 2025. This technical setback has overshadowed the positive momentum generated earlier in the week when DFINITY Foundation announced a significant AI partnership and new developer incentive programs on August 23.

Despite the earlier 8.45% surge that pushed ICP price to $5.39 following the AI partnership announcement, the recent protocol delays have created developer concerns and shifted market sentiment. The ICP/USDT pair has now given back most of those gains, with the current price at $4.87 representing a concerning test of critical support levels.

The timing of these delays is particularly problematic as the broader cryptocurrency market remains sensitive to technical developments and execution capabilities of blockchain protocols. Internet Computer’s inability to deliver on schedule has raised questions about the project’s development roadmap and technical capabilities.

ICP Technical Analysis: Bearish Signals Emerge

Internet Computer technical analysis reveals concerning momentum indicators across multiple timeframes. The Internet Computer’s RSI currently sits at 42.06, indicating neutral territory but with clear bearish bias as it approaches oversold conditions.

The MACD configuration presents a distinctly bearish picture for ICP, with the main line at -0.1219 and the signal line at -0.0760. The negative MACD histogram of -0.0459 confirms strengthening bearish momentum for Internet Computer price action.

Moving averages paint an equally concerning picture, with ICP price trading below all major moving averages. The current price of $4.87 sits well below the 7-day SMA at $5.02, the 20-day SMA at $5.28, and even the longer-term 200-day SMA at $5.45, indicating a comprehensive bearish trend reversal.

The Stochastic oscillator provides additional confirmation of selling pressure, with Internet Computer’s %K at just 6.54 and %D at 17.36, both deep in oversold territory suggesting potential for further downside before any meaningful bounce.

Internet Computer Price Levels: Key Support and Resistance

Based on Binance spot market data, Internet Computer support levels are now being tested with increasing intensity. The immediate ICP support sits at $4.81, which aligns closely with the current trading range low and represents a critical psychological level for bulls.

If the $4.81 level fails to hold, Internet Computer’s next major support zone extends down to the 52-week low of $4.55, representing potential downside of approximately 7% from current levels. This level would likely attract significant buying interest given its historical significance.

On the upside, ICP resistance levels remain formidable. The immediate resistance sits at $6.08, while stronger Internet Computer resistance emerges at $6.25. Given the current bearish momentum, these levels appear unlikely to be tested in the near term without significant positive catalysts.

The Bollinger Bands analysis shows ICP near the lower band at $4.71, with the current %B position at 0.1336 indicating the price is trading in the lower 13% of the recent range. This positioning often signals oversold conditions but can persist during strong downtrends.

Should You Buy ICP Now? Risk-Reward Analysis

For aggressive traders, the current ICP price level presents a potential contrarian opportunity, but with significant risks. The oversold technical conditions combined with proximity to major support at $4.81 could provide a short-term bounce opportunity for skilled traders.

Conservative investors should exercise extreme caution given the fundamental concerns about protocol delays and the comprehensive bearish technical setup. The risk-reward profile currently favors waiting for either a clear break below $4.81 for short positions or a decisive reclaim of the $5.28 resistance level before considering long positions.

Day traders focusing on the ICP/USDT pair should note the daily ATR of $0.31, providing clear volatility expectations for position sizing. Stop losses below $4.75 would limit downside risk while targeting any bounce toward $5.11 (the EMA 12 level).

The protocol delay news creates fundamental uncertainty that technical analysis alone cannot address. Until DFINITY provides clear timelines and solutions for the upgrade issues, Internet Computer price action may remain pressured regardless of oversold technical conditions.

Conclusion

Internet Computer faces a critical juncture as protocol delays challenge the positive momentum from recent AI partnerships. With ICP price testing key support at $4.81 and bearish technical indicators dominating, the next 24-48 hours will likely determine whether Internet Computer can stabilize or faces a deeper correction toward the $4.55 yearly low. Traders should monitor volume closely, as any break of current support levels could accelerate selling pressure significantly.

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