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- Shrishesh Tanksalkar
Shrishesh Tanksalkar
- Nov 03, 2025 06:57 UTC
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ICP Price Spikes 10%, Short Squeeze And Technicals Drive Rally Above $4?
ICP price rallies 10% on short liquidations, technical bounce off $3.33 support
Open Interest data reveals traders caught off guard, fueling leveraged buying
Layer-1 outperformance, ICP surges 20% in a week despite sector weakness
Internet Computer price made headlines with a sharp 10% rally to $3.96, standing out as one of the few Layer-1 tokens with double-digit weekly gains. The move wasn’t out of thin air. Short liquidations, a timely technical bounce from Fibonacci support, and robust market volume propelled the ICP price higher.
As market cap jumped by 9.95% to $2.13 billion and 24-hour trading hit $449.92 million, ICP proved resilient. Most notably, the bounce aligned with a bullish divergence on lower timeframes, even though the weekly chart remains in a broader downtrend since March. Bulls have wrestled control, but how sustainable is this run, and what does open interest across futures tell us about the next move? Join me as I explore the same.
Internet Computer Futures Open Interest
CoinGlass data shows ICP futures open interest fluctuated sharply as price rose from $3.33 support, exposing leveraged short positions that were forced to unwind during the rally. As ICP’s price leapt, a cluster of liquidations near $3.55 drove a feedback loop of buying pressure, pushing open interest higher.
These rapid changes highlight how quickly sentiment can flip when technical levels are breached and leveraged positions are caught off guard. Successively, the correlation between rising open interest and price spikes highlights ICP’s volatility and its appeal for short-term momentum traders.
ICP Price Analysis
Internet Computer’s price recovery is mainly technical. Price rebounded from the $3.33 Fibonacci support, which marks the 78.6% retracement of 2025’s swing high-low. This triggered a bullish divergence seen on lower timeframes. The RSI spiked to 80.87, confirming short-term overbought conditions. While the 4-hour candles pierced through high-volume resistance zones.
The rally was amplified by a cascade of short liquidations, notably around $3.55, forcing traders to buy back positions. Despite mixed macro signals and a broader weekly downtrend, ICP broke out above $4. Core resistance at $4.05, the 23.6% Fib level, now acts as the next short-term pivot.
Successively, bulls must maintain momentum above $3.78 and target a sustained breakout above $4.05 to confirm a reversal. Otherwise, a retest of $3.33 support could quickly become reality.
FAQs
ICP’s rally was primarily triggered by a cluster of short liquidations, a technical bounce off key Fibonacci support, and strong volume.
Rising open interest reflects increased leveraged activity and traders getting caught offside in the recent price move, intensifying the rally during liquidations.
The next resistance is $4.05, while support is seen at $3.78 and $3.33. A sustained move above $4.05 could open targets up to $4.50 and $4.72 in the mid-term.
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