ICP eyes $2.80 support as fears of an extended bearish cycle remain

The crypto AI sector saw a slight decline in total market capitalization. From $22.61 billion on the 9th of May, the market cap of the sector has shrunk slightly to $21.01 billion, though it was up 21% over the past month.

The top six tokens by market cap in the sector showed mixed performance over the past week, but Internet Computer [$ICP] was the weakest among them. It was down 5.35% in 24 hours and 8.7% in a week.

The recent losses could be because Coinbase delisted $ICP/$USDT, a non-USD pair. It should be noted that the exchange has not halted all $ICP-related services.

$ICP’s warning signs

In a recent report, AMBCrypto had observed that the higher timeframe price structure was bearish. Traders should beware of the rally, which at that time was at $3.7.

Source: $ICP/$USDT on TradingView

Since reaching a high of $4.09, the AI crypto token has receded by 30.8%. $ICP has fallen back into the local range (purple) between $2 and $2.84.

Combined with the higher timeframe bearish structure and the quick bearish reaction from the $4 supply zone, it appeared likely that the altcoin would see further losses.

The $2.8 region has acted as both support and resistance since December 2025, and a price bounce from this level was possible.

Source: Santiment

If it does occur, such a bounce might not last long owing to the profit-taking activity from holders. The MVRV ratio is used to gauge the actual profitability of tokens.

In the chart above, the time-bound versions of this metric were used to understand if different cohorts of holders were underwater or not.

Since October 2025, whenever the 365-day MVRV ratio of $ICP climbed into positive territory, a sharp correction has followed. It occurred in November, January, March, and May.

It indicated that $ICP tokens that had moved at least once within the past year were back in profits after the steady downtrend. This resulted in profit-taking activity and a steep price correction.

If this pattern holds up, the altcoin is likely to test the $2.2-$2.3 lows later this month.

Final Summary

The $ICP rejection from just above the $4 level lined up with the higher timeframe bearish swing structure.

The 365-day MVRV ratio showed a pattern that could see further losses for the altcoin.