Internet Computer (ICP) token rose 9% over the past 24 hours, while trading volume spiked 93%, making it one of the top altcoin gainers amid a broader crypto market recovery. The price retested a key supply zone after bouncing from a seven-day low, touching levels last seen in mid-February before pulling back.
Technical Setup: Bullish RSI and MACD, Yet Moving Averages Cap Upside
On the daily chart, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator are signaling building bullish momentum. The price is attempting to break a long-term downtrend line. However, ICP remains below both its 50-day and 100-day simple moving averages (SMAs), which provide overhead resistance. Support sits at recent lows.
DFINITY Proposal: 20% of Cloud Engine Revenue to Buy and Burn ICP
The rally coincides with a tokenomics upgrade proposal from the DFINITY Foundation. Under the plan, 80% of the Internet Computer network's cloud engine revenue would go to node providers, while the remaining 20% would be used to purchase and burn ICP tokens from the open market. This ties supply reduction directly to network usage, shifting from fixed subsidies to performance-based incentives — a model similar to other cloud-compute focused blockchain networks.
The proposal, still under discussion, is seen by the market as a significant attempt to create long-term value capture for ICP. If implemented, higher cloud engine revenue could lead to more frequent and larger ICP burns, reducing circulating supply over time.
Sentiment was also lifted by a broader market uptick driven by Nvidia-related developments, with AI narrative tokens like NEAR, Bittensor, and Render also posting gains. ICP benefited from the AI sector momentum as well.