Internet Computer (ICP) has been trading sideways near $2.17 since mid-June, with both the 9-day and 26-day moving averages flattening out, reflecting minimal daily price shifts.
The token now sits at the apex of a triangle consolidation pattern, formed by a horizontal support level of $2.12 and a tightening resistance line declining from $2.50 to $2.20. This setup has persisted for about two months, signaling that a breakout could be imminent.
Such patterns often precede periods of increased volatility once the price escapes the narrowing range. Should ICP break and hold above the descending resistance, a rally toward $2.50 or beyond looks plausible. Supporting this outlook, the Bull Bear Power indicator recently turned positive, coinciding with a surge in spot trades exceeding 10,000 ICP on Binance since mid-July.
Over 503 million ICP tokens have been accumulated in the past two weeks alone, continuing a buying trend that began in late June. However, a breakdown below $2.12 could trigger declines toward the next support at $2, or even the $1 to $1.16 zone, last tested in October.
On-chain Activity Contrasts Price Action
Despite this technical optimism, on-chain data paints a different picture. Daily transactions have fallen roughly 62% this month, sliding from 9,612 to 3,680 the lowest point in July. Trading volume has also collapsed, dropping from nearly 2.87 million ICP to 362,700 tokens.
Still, ICP led all blockchains in monthly transaction count with 9.4 billion, edging out Solana’s 8.6 billion. This paradox between heavy accumulation and weakening network activity creates an unusual backdrop ahead of a possible breakout.
