Internet Computer (ICP) Retraces November Gains as Crypto Markets Slip Into Caution Mode

The broader crypto market has continued to wobble this month after Bitcoin slipped below the crucial $100,000 psychological benchmark, an event that has shaken confidence and revived discussions of a potential bear season. Altcoins have felt the weight of this sentiment, and Internet Computer (ICP) is no exception. After staging an impressive breakout in early November, ICP is now retreating sharply, testing a major multi-month demand zone that could determine its next direction.

Over the past seven months, ICP traded within a wide consolidation band between roughly $3.70 and $6.50, repeatedly rejecting both boundaries. This range acted as the backbone of its price structure until early November, when a sudden burst of momentum propelled ICP above $9.00 for the first time in months. However, that rally proved short-lived. Since mid-November, the token has reversed aggressively, dropping back into the thick of its old range and now resting on one of its most contested support floors.

ICP Recent Price Action:

The early November breakout initially signaled a shift in market structure. ICP broke above all major daily moving averages: 20-, 50-, 100-, and 200-day EMA, forcing a short-term bullish narrative. But as Bitcoin’s broader sell-off intensified, ICP’s momentum faded. A series of lower highs formed across mid-November, leaving the token unable to reclaim the 20-day EMA, which has now turned downward.

Price has since slid back to the $4.00–$4.20 zone, a region that acted as a strong support base throughout April–October. ICP is currently hovering slightly above this level, with selling pressure still evident but slowing.

Bullish Scenario: 

For bulls, the key lies in defending the $4.00 support. Historically, this level has triggered multiple rebounds, and holding it could provide the foundation for another attempt to reclaim momentum. A bounce here would likely target the 20-day EMA first, followed by the cluster of resistance formed by the 50-, 100- and 200-day moving averages around $4.75–$5.15.

A daily close back above this resistance stack could reinstate a bullish structure, opening the door for a push deeper into the multi-month range. The next target zone would be $5.80–$6.50, which marks the upper boundary of ICP’s long-running consolidation band.

Bearish Scenario: 

If bearish pressure intensifies and ICP decisively loses the $4.00 floor, the structure turns significantly weaker. A breakdown here may send price toward $3.50, a level not visited since early October before the November breakout. Failure to stabilize between $3.50–$3.70 could expose ICP to deeper losses, potentially revisiting the sub-$3.00 wick seen during the extreme September volatility event.

A continued rejection from the declining EMAs would further support the bearish case, signaling that sellers remain firmly in control.

Outlook

While ICP’s early-November surge hinted at a fresh trend, the rapid reversal driven by broader market weakness places it back into a defensive stance. The next few sessions around the $4.00 support level will be critical. If buyers step in—as they have many times before—ICP may stabilize and attempt a recovery. But a breakdown could confirm a deeper retracement, especially if Bitcoin continues to struggle below the six-figure psychological barrier.

For now, traders are watching the range with caution, aware that market sentiment remains fragile.