ICP Sees 3% Pullback, Rebounds Following Caffeine Rollout -

24-Hour Change: –3.47%
Range: $5.2115 to $5.50
Current Price: $5.4324
Support: $5.20–$5.28
Resistance: $5.40–$5.42
Key Drivers: Launch of Caffeine, Token Burn, vetKeys Protocol
Trend Outlook: Neutral to bullish with signs of institutional accumulation

ICP Bounces Back Following DFINITY’s Launch of AI-Based ‘Caffeine’ Platform

Internet Computer (ICP) recovered from early losses on Monday as investor sentiment improved after the launch of Caffeine, an AI-powered Web3 development platform unveiled by the DFINITY Foundation.

Unveiled at the “Hello, Self-Writing Internet” event in San Francisco, Caffeine enables users to build decentralized applications through natural language commands — eliminating the need for code. The announcement sparked a shift in momentum for ICP, which had earlier declined as low as $5.27 before recovering to close at $5.4324, narrowing its 24-hour drop to 3.47%.

The token initially slid overnight from $5.39 to $5.20, fueled by bearish activity and high trading volume exceeding 850,000 contracts at 03:00 UTC. However, buying activity picked up after 14:30 UTC, pushing prices back up as large trades were recorded at 14:52 (41,106 units), 15:03 (44,658), and 15:29 (17,658).

Strong support has re-emerged between $5.20 and $5.28, while resistance at $5.40 to $5.42 continues to hold, a zone that’s previously stalled bullish momentum.

Beyond the Caffeine launch, DFINITY bolstered market confidence with two major updates:

The burning of over 1 million ICP tokens, reducing circulating supply.
The release of vetKeys, a privacy protocol addressing data security across the blockchain.

With a stronger fundamental base and renewed technical interest, ICP appears poised to retest resistance levels near $5.40, supported by increased trading activity and growing ecosystem demand.