The market just witnessed one of the sharpest moves this week. $ICP plunged nearly 47%, dropping to around $2.45, as a broader $110B crypto market wipeout triggered heavy liquidations across multiple assets.
Technically the chart still looks weak. Price is trading below all major EMAs, momentum indicators remain negative, and RSI around 42 suggests the market has not fully reset yet. The MACD staying below zero confirms that sellers still control the short-term trend.
But the interesting part is happening beneath the surface.
Large smart-money whales are still holding profitable short positions from around $3.67, which explains the heavy downward pressure. At the same time, top traders are doing the opposite — aggressively buying the dip, issuing multiple buy signals trying to catch a potential bottom.
That creates a classic divergence.
If ICP reclaims $2.65, it could trigger short covering from those whale positions and cause a fast rebound. On the downside, losing $2.40 support may open the door for another liquidation wave, with some traders watching the $2.00 zone as a possible accumulation area.
For now the market is in a delicate balance between forced selling and opportunistic buying.
One thing remains clear: ICP still sits in the broader AI infrastructure narrative, which means volatility tends to attract attention quickly when sentiment flips.
The next move will likely come from whether buyers can defend support — or whether the deleveraging continues.
What do you think happens next for ICP?
Bounce from here or another leg down first?
Comment your view 👇