ICP Surges Despite Market Slump, Fueled by Caffeine Launch and Whale Accumulation

In a surprising show of strength, Internet Computer’s native token ICP has rallied for the fourth consecutive day, outperforming the wider cryptocurrency market. The surge comes on the heels of growing enthusiasm surrounding Caffeine, a newly announced AI-based development platform from the Dfinity Foundation.

ICP Outpaces Market Amid AI Buzz

According to data from crypto.news, ICP jumped by 8%, reaching an intraday peak of $5.66, and pushing its market capitalization beyond $3 billion. This marks a 32% increase from its year-to-date low, even as the total crypto market cap declined by 2.2% to $3.4 trillion over the last 24 hours.

Driving this upward momentum is the excitement around Caffeine, a groundbreaking platform introduced by the Dfinity Foundation, which supports the Internet Computer Protocol (ICP). Caffeine, which recently opened for alpha access, was unveiled during a live demonstration by founder Dominic Williams at the World Computer Summit held in Zurich on June 5.

Caffeine: Democratizing Blockchain Development

Caffeine aims to revolutionize blockchain application development by allowing users to build apps on ICP through natural language commands, eliminating the need for traditional coding. The platform utilizes ICP’s robust smart canister architecture and is optimized for use on mobile devices, thereby expanding its global accessibility.

Currently, the alpha version is open for waitlist registration, with a public beta rollout expected within the next month.

Whale Accumulation Signals Growing Interest

Renewed attention from investors, especially larger holders, appears to be another key factor behind ICP’s surge. On-chain data from Santiment indicates increased accumulation by whales, particularly wallets holding between 1,000 and 1 million ICP tokens. This behavior often leads to FOMO (fear of missing out) among retail investors, potentially driving the price even higher through increased buying pressure.

Technical Analysis: Signs of a Bullish Reversal

On the daily USDT chart, ICP has successfully broken out of a multi-month descending trendline, signaling a potential change in trend. The token has also moved beyond the upper edge of a descending channel, reinforcing the bullish outlook.

Furthermore, ICP is now trading above its 50-day simple moving average (SMA). Both the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) indicators are also trending upward, reflecting strengthening buyer momentum.

What’s Next for ICP?

If bullish momentum continues, the next key resistance level is near $6.88, which coincides with the 23.6% Fibonacci retracement level. A breakout beyond that could set the stage for a move toward $8.53, the 38.2% retracement level, representing an approximate 51% upside from current levels.

On the downside, if ICP falls below the psychological support at $5.00, it may decline further to test the next major support near $4.20.