• ICP adds over $1B in market cap while most altcoins struggle amid market pressure.
• Institutional interest grows as ICP 2.0 upgrades strengthen the Internet Computer’s position.
• Analysts see a potential rise toward $10–$16 after the breakout despite short-term correction risks.

Since the beginning of the month, Internet Computer (ICP) has increased by more than $1 billion in market cap, representing an 11% increase in value over the past day. While most altcoins have recorded losses. This increase occurs during a time when the greater cryptocurrency market is under pressure from the ongoing U.S. government shutdown and slowing economic growth.  

Last month, ICP recorded an all-time low, so the speed of its recovery. This has made investors and traders focus on the asset’s short-term performance.  

ICP Gains Institutional Interest with Scalable On-Chain Infrastructure

The token is once again an asset with potential institutional value. The project aims to provide blockchain infrastructure that operates at internet speed and seeks to reduce the cost of computing and increase the scalability of the applications running on decentralised systems.  

Also Read: Internet Computer (ICP) Falling Wedge Formation Signals Breakout to $11.50

These features have made Internet Computer a rival to web service providers like Amazon Web Services. The protocol allows businesses to host their operations and decentralised applications directly on-chain. The renewed institutional narrative has been an important factor in driving the recent increase in its value.

Enhanced features such as the AI-powered application builder Caffeine and the rollout of Internet Identity 2.0, a decentralised authentication tool, improving privacy and security for the users, come with ICP 2.0, improving the position of the network in the market.  

The added upgrades included the expansion of cross-chain interoperability, enabling the Internet Computer to communicate with other blockchain networks. Tokenomics is now a deflationary system.  

ICP Breaks Out, Targets $10 to $16 Range

From a technical point of view, the coin surged in value after breaking out of a month-long descending triangle pattern. Although this pattern is typically seen as bearish, the token in this scenario did not prolong the downtrend. It appreciated in value, suggesting a possible upturn in momentum.

The cryptocurrency’s surge also resulted in the breakout of a larger fragmentation descending channel pattern, decreasing in value over the past year. After a long period of consolidation, traders recognised that the breakout validated a change. The rapid increase in value is anticipated to slow down, as most market indicators are overextended.

The MACD histogram registered its fastest ascent since late 2024, which points to short-term volatility likely increasing, especially as investors start taking profits. The relative strength index, also approaching 70, suggests that the token may be in overbought territory.

If momentum is sustained, ICP will likely reach the $10 mark in the next few sessions. Analysts expect a breakout will lead to a potential 90% increase relative to the current price. The $16 mark will be the token price in the extended bullish scenario and will represent 2024 highs.

Also Read: Internet Computer (ICP) Price Set to Skyrocket? Analyst Targets $10 in 2025!