ICP Retreats From $5.75 High Amid Heavy Distribution

ICP$3.2667 reversed after testing the $5.75 level in the early hours of Aug. 11, succumbing to selling pressure that drove the token down to $5.43.

ICP appeared to be in a steady consolidation pattern between $5.65 and $5.67 before a rally propelled the token to its $5.75 peak. However, the momentum faded as sellers stepped in heavily after 11:00 UTC. Trading volume surged to 965,595 units — almost double the daily average of 487,064 — as distribution intensified around the $5.61 resistance zone, indicating profit-taking and institutional selling, according to CoinDesk Research's technical analysis data model.

Buyers then defended the $5.44 support level, triggering a rebound from $5.46 to $5.54. The climb was fueled by a volume spike to over 75,000 units between 13:41 and 13:48, more than quadrupling the hourly average and pointing to potential institutional accumulation after the sell-off.

Despite the recovery, ICP remains in the red at the time of writing. Still, the strong defense of key support levels and the breakout through short-term resistance zones hint at resilience, leaving the door open for bullish follow-through if buying pressure persists.

Technical Analysis

• Price range spanned $0.31, marking a 5% spread between $5.75 high and $5.43 low.
• Sideways consolidation at $5.65–$5.67 preceded the breakout to $5.75.
• Post-peak reversal accelerated after 11:00 UTC, led by heavy selling.
• Volume spike to 965,595 units dwarfed 487,064 daily average.
• Resistance formed at $5.61 during peak selling activity.
• Support held firm at $5.44 before rebound began.
• Recovery pushed through $5.47 and $5.52 resistance zones.
• Volume reached 75,000 units, topping 18,500 hourly average.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.