Internet Computer delivered one of the strongest performances in the crypto market on Thursday, surging nearly 34% as a sharp drop in exchange balances and a major tokenomics proposal fueled bullish sentiment.<\/p>\n\n\n\n
The rally has pushed ICP into technical territory that traders are watching closely, with a massive bullish flag forming on the weekly chart and on-chain data pointing to a developing supply shock.<\/p>\n\n\n\n
ICP climbed to an intraday high of $4.78 during Asian trading hours before stabilizing near $4.66. The move extended weekly gains to roughly 45% and lifted year-to-date performance to nearly 79%.<\/p>\n\n\n\n
Beyond the broader market rebound supported by Bitcoin\u2019s recovery, the primary catalyst came from a newly released whitepaper by the DFINITY Foundation, the nonprofit organization behind Internet Computer\u2019s development.<\/p>\n\n\n\n
The proposal, known as Mission 70<\/strong>, outlines a plan to reduce ICP inflation by at least 70% by the end of the year. According to the paper, around 44% of the reduction would come from supply-side changes, including cuts to voting rewards and node incentives.<\/p>\n\n\n\n The remaining 26% would be driven by increased network activity, with a focus on AI-powered on-chain cloud engines and autonomous agents. If successful, the changes could materially improve ICP\u2019s long-term supply dynamics and strengthen confidence among investors and developers.<\/p>\n\n\n\n At the same time, on-chain data suggests selling pressure is rapidly declining. Data from Nansen shows that the total amount of ICP held on exchanges dropped by roughly 63% in the past 24 hours.<\/p>\n\n\n\n Such a sharp decline typically signals that both whales and retail holders are moving tokens off exchanges, either into self-custody wallets or into long-term staking neurons. This behavior reduces immediately available supply and can amplify price moves if demand remains strong.<\/p>\n\n\n\n With fewer tokens sitting on exchanges, even modest buying pressure can have an outsized impact on price, reinforcing the bullish setup currently forming on higher timeframes.<\/p>\n\n\n\n From a technical perspective, ICP is flashing a textbook continuation pattern. On the weekly chart, price action has been carving out a large bullish flag, a structure that often appears after a strong impulsive move followed by a period of consolidation.<\/p>\n\n\n\n Historically, confirmed bullish flags tend to resolve with a breakout that mirrors the length of the initial flagpole. For ICP, this suggests meaningful upside potential if resistance levels are cleared.<\/p>\n\n\n\n The next major level traders are watching sits around $7.50<\/strong>, which has acted as a key resistance zone. A decisive breakout above this area would likely confirm the pattern and could open the door for a move toward $10<\/strong> or higher if bullish momentum persists.<\/p>\n\n\n\n Momentum indicators support the bullish case. The Supertrend indicator remains green, while the MACD has printed a bullish crossover, signaling that buyers still have control of the broader trend.<\/p>\n\n\n\n With inflation set to fall, exchange supply shrinking rapidly, and a multi-year bullish flag nearing resolution, Internet Computer is approaching a critical technical and fundamental inflection point.<\/p>\n\n\n\n A sustained breakout above resistance could mark the beginning of a larger trend reversal for ICP. However, failure to clear key levels may result in continued consolidation as the market digests recent gains.<\/p>\n\n\n\n As always, traders are watching volume, momentum, and follow-through closely to determine whether this setup turns into a full-scale breakout or stalls below resistance.<\/p>\n","protected":false},"excerpt":{"rendered":" Internet Computer delivered one of the strongest performances in the crypto market on Thursday, surging nearly 34% as a sharp drop in exchange balances and a major tokenomics proposal fueled bullish sentiment. The rally has pushed ICP into technical territory that traders are watching closely, with a massive bullish flag forming on the weekly chart…<\/p>\n","protected":false},"author":3,"featured_media":13526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[1966,1967,1961],"class_list":["post-13510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-computer-price","tag-crypto-flag","tag-internet"],"yoast_head":"\nExchange balances plunge as whales accumulate<\/h3>\n\n\n\n
Bullish flag takes shape on weekly chart<\/h3>\n\n\n\n
Can ICP break out?<\/h3>\n\n\n\n