Internet Computer (ICP) rallies 60% to test long-term trendlines

Internet Computer (ICP) has experienced a significant rally, gaining over 60% in less than two months. The token has recently been trading near $3.20, testing a long-term trendline that has been active since early 2024.

Technical analysis indicates that ICP has established a pattern of higher highs and higher lows since August, supported by an ascending trendline. While the token has moved above previous resistance levels near $2.40 and $2.62, market indicators show mixed positioning. A negative funding rate suggests prevalent short positioning, which could potentially trigger a short squeeze if prices continue to rise.

Key levels for future price action include $3.23 and $3.25 for continued bullish momentum, while $3.00 serves as a critical support level. A failure to hold $3.00 could lead to a pullback toward the $2.61–$2.75 range or a retest of the trendline near $2.45. Despite the recent surge, the token remains significantly below its all-time high of $750.