ICP Drops 5.09% Amid Altcoin Pullback, Analysts See Normal Correction

Internet Computer (ICP) has taken a hit in recent days, dropping by around 5.09% over the past 24 hours, according to CoinMarketCap.

This decline comes on the heels of a significant rally that saw ICP surge by about 60.4% in under two months, pushing above $3.30 and outperforming Bitcoin, Ether, and XRP over roughly four weeks.

The analysts suggest that this pullback is not due to any project-specific bad news but rather a normal correction following the strong multi-week rally within a slightly weaker altcoin market.

A key factor contributing to this decline is the natural correction after ICP's rapid ~60% rally, which left it stretched near resistance and still up on a 7-day basis. Additionally, the current macro environment is less favorable for high-beta altcoins like ICP, with BTC ETF inflows slowing, some macro uncertainty ahead of key U.S. data, and broad altcoin exchange deposits rising.

The analysts point out that short-term speculative positioning and technical patterns also played a role in ICP's sensitivity to the shift from aggressive buying to profit-taking, particularly with the formation of a rising wedge risk after a widely watched breakout.