ICP tests key Fibonacci level as trading volume climbs

The Internet Computer’s native token, ICP, is showing renewed strength as it tests the 0.382 Fibonacci retracement level on the daily chart, with trading activity starting to pick up again.

After a sharp correction from its recent high, ICP appears to be consolidating above the 6.4 range, a zone watched closely by traders as potential short-term support. The Fibonacci level aligns with previous areas of price reaction, suggesting a tug-of-war between buyers and sellers as the market searches for direction.

Daily trading volume has risen to about $522 million, hinting at returning market interest. Analysts watching the chart note the possibility of an early recovery attempt, though momentum remains cautious until a clean breakout above 7 confirms renewed upside confidence.

The price structure also reflects what some traders describe as a completed A-B-C corrective wave following a five-wave rally earlier in the month. If the pattern holds, the current setup could mark the early stages of a new accumulation phase — provided volume continues to build and the market maintains its footing above the 6 zone.

While ICP’s broader fundamentals continue to attract attention due to its push into AI-driven on-chain app development, short-term technicals are likely to dictate market sentiment in the days ahead. For now, the 0.382 retracement level remains the battleground to watch.