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Internet Computer [$ICP] is up more than 12% in the past 24 hours, coming in third among CoinMarketCap’s top 100 cryptos by gains. The decentralized AI compute play mainly drove the altcoin.
Additionally, technical breakout, network activity, and a short squeeze have had a hand in the day’s rally.
$ICP bulls return, eyeing $4—is it possible?
The daily price action chart has surged above the range consolidation that had kept $ICP between $2 and $2.80 since February. Following a breakout in the first week of May, Internet Computer rallied above $4 but has been in a correction for the past two weeks.
The correction appears to have ended at around $2.50, where it consolidated for around 10 days. Consequently, $ICP broke above this range again.
The MACD bars have shown seller exhaustion, with the signal and MACD line crossover suggesting bulls’ return. The Average Directional Index (ADX) is at 19 and stabilizing, confirming this bullish outlook.
As bulls reclaim the $3 mark, more capital inflows would push it toward $4. This was more likely if the altcoin stayed above the three-month consolidation market. Otherwise, the sideways consolidation may persist.
A spike in short liquidations
Another factor that drove the prices of Internet Computer was the massive liquidation of short orders. More than $505 million in short liquidation leverage was at $2.78, and another $410 million was at $2.97.
A run on these $915 million orders as the price approached $3 resulted in a short squeeze. As a result, the altcoin broke above the range as price follows liquidity.
Still, since liquidity is dynamic, there were orders forming below $2.50, which was the turning point for the current rally. This indicator suggests it could drop again if bulls do not defend $2.80 as support.
$ICP burn rate and its outperformance against other networks
Notably, the altcoin’s burn mechanism is helping to control the circulating supply.
In the past 24 hours, the network permanently burned more than 15k $ICP, bringing this month’s total to 97k tokens. It is the best monthly burn rate since August 2025. The cumulative burned $ICP tokens stood at 2.78 million as of press time.
Moreover, $ICP surpassed Solana [$SOL] and BNB Smart Chain [BSC] in monthly transaction volume, as per Chainspect. $ICP hit a value of 6.91 billion, while $SOL and BSC were at 2.97 billion and 440 million, respectively.
As such, it indicated that $ICP was becoming a key blockchain thanks to the trending decentralized AI compute play.
Final Summary
- $ICP surged by about 12% in the past 24 hours as bulls aim to reclaim $4 again.
- $ICP’s massive short liquidations alongside thriving network activity fueled its uptrend.