Internet Computer’s ICP token has rallied 8% to $5.66, propelled by the launch of the AI-powered Caffeine platform and significant whale accumulation. The upward movement signals potential for continued gains amid broader market weakness.
The Caffeine platform enables blockchain application development through natural language commands, simplifying smart contract creation. This innovation coincides with substantial accumulation by large holders, with wallets containing 1,000 to 1 million ICP tokens demonstrating increased activity, indicating growing institutional confidence.
Technically, ICP has broken out from a descending trendline and trades above its 50-day simple moving average. Bullish momentum is reinforced by positive MACD and RSI indicators. Analysts project potential upside to $6.88 (23.6% Fibonacci retracement) and $8.53 (38.2% retracement), with key support levels at $5 and $4.20.
The rally contrasts sharply with declining trends across the broader cryptocurrency market, highlighting ICP’s unique momentum driven by Caffeine’s technological advancement. Anticipation builds for the platform’s upcoming public beta launch, which may further catalyze adoption and token demand.