The Internet Computer (ICP) continued its downtrend in the short term on Wednesday, falling 1.52% in the past 24 hours as slowing trading volumes hinted at weakening market demand.
The decline comes despite a cautious market mood that remains risk-averse due to continued infrastructure development in the ICP market.
Currently, ICP is trading at $3.65, with a 24-hour volume down 20.55% to approximately $161.19 million, according to CoinMarketCap. The market capitalization is close to $2 billion, down 1.94% for the day.
The combined downturn in price and volume indicates a lack of interest from buyers, which is due to the bearish effect.
Also Read: ICP Breakout Above Resistance Could Target $14 Pivot High
ICP Daily Chart Shows Early Structural Stabilization
However, in spite of the constant pullback, the overall price action of ICP is beginning to show signs of initial stabilization. According to crypto analyst Nehal, on the daily chart, the price movement indicates the end of a corrective wave following an initial impulsive rally.
The area around $2.95-$3.00 has consistently acted as a demand level, as buyers have consistently supported this area in recent corrections.
Technical analysis improved after ICP broke above a trendline, indicating a possible end to the patience of a bearish market. The current price is currently ranging between $3.6 and $4.1, which was a resistance area but is currently turning into a support area.
Volume profile analysis indicates strong acceptance within the current range, but low volumes on the other side indicate that any actual move will trigger faster movements.
These levels remain technically constructive as long as ICP remains above the $2.95 level of support. However, any upside predictions are purely speculative at this point and dependent on market conditions.
With prices ranging from $2.95 to $5.78, a potential upside of 94% appears to exist. The levels to hit are $4.11, $5.78, the area between $6.50 and $7.02, and the round number of $8.00. The first level to be overcome is $5.78. The bull scenario remains valid only if prices remain above $2.95.
Swiss Subnet Strengthens Institutional Adoption Narrative
While short-term price action remains under pressure, Internet Computer’s long-term fundamentals continue to evolve. At the World Economic Forum in Davos, DFINITY founder Dominic Williams announced the launch of the Swiss Subnet, the first national subnet live on the Internet Computer network.
The Swiss Subnet enables organizations to host their applications while maintaining their sensitive data within the jurisdiction of the Swiss. The Swiss Subnet is fueled by autonomous Swiss infrastructure and is managed by thirteen independent node providers.
The subnet avoids the use of centralized clouds such as Amazon and Google. The design of the subnet emphasizes data sovereignty, neutrality, and GDPR compliance.
This development further cements ICP’s position as a Web3 infrastructure layer worthy of the government, institutional, and regulated space.
While the price action may not react immediately, the Swiss Subnet certainly gives ICP’s institutional adoption argument some weight at a time when compliance and having a clear jurisdiction are becoming increasingly important.
Why This Matters
A corresponding drop in trading volume, coupled with declining prices, suggests a lack of speculative fervor, and thus the aforementioned support levels become even more significant in determining the future market trend.
The launch of the Swiss Subnet highlights the growing attractiveness of ICP to regulated and institutional use, which may have a bearing on long-term market valuation.
Also Read: Internet Computer (ICP) Set to Surge: Key Price Targets $4–$17.50
