ICP Soars to 3-Month Peak as AI Frenzy Sparks Investor Frenzy

AI hype meets crypto momentum—Internet Computer (ICP) just notched its highest price since August 2025. Here's why traders are piling in.

The AI Pump Playbook Strikes Again

Another day, another 'AI-powered' crypto rally. ICP's 20% weekly surge smells suspiciously like last quarter's NVIDIA-driven altcoin pumps—except this time, decentralized cloud computing takes center stage.

Three-Month Highs Defy Broader Market Slump

While Bitcoin flatlines near $35K, ICP bulls smashed through resistance levels like a Web3 startup burning through VC cash. The token now trades at prices last seen before the September regulatory crackdown.

Greed Index Flashing Orange

FOMO's creeping back—exchange inflows suggest retail traders are chasing the move. 'AI integration' roadmaps always juice prices, though actual adoption tends to lag behind whitepaper promises by... oh, about three earnings cycles.

Will ICP's infrastructure narrative hold water? Or is this another case of 'buy the rumor, sell the VC token unlock'? Either way—the algo traders are eating well tonight.

Internet Computer aimed to become one of the go-to chains, but was displaced by solana and the new DeFi boom on Ethereum. Now, the token is trending along with a recovery for other AI tokens. As a whole, the AI token space expanded to a total valuation of $27B. 

The current ICP rally has been in the making for a few days, with mindshare growing by 191%. ICP is still far from the leading networks, as the platform did not carry the latest trends in DeFi and DEX trading. 

ICP rallies with inflow of derivative traders

As with other mostly inactive tokens, ICP reawakened on a sudden growth of derivative trading. Open interest spiked overnight to $162M. The market is relatively small compared to other assets. 

Despite the delay of a real altcoin market, specific assets meet the conditions for strong directional moves. The widely available derivative markets take over, magnifying the rallies. For now, the fundamentals of ICP have not changed, but the token saw additional liquidity inflows. 

The Internet Computer chain only locks in around $23M in liquidity, with limited usage in app creation. At one point, Internet Computer had claims on challenging Solana and becoming the go-to chain for apps, but never managed to create the same community.

ICP climb got a boost from a short squeeze

Most of the additional open interest for ICP is on Binance, the token’s main trading venue. Unlike other tokens, in the case of ICP, only around 30% of positions are short. In the past day, around $5M in short positions were liquidated, leaving traders to rebuild. 

ICP rose on a mix of general AI HYPE and a short squeeze. After a long slide in the past months, ICP was attracting short traders. Since the end of October, it has become harder to hold short positions, as ICP saw consistent negative funding. The negative funding trend continued during the latest price rally, further challenging the holders of short positions. 

As of November 7, ICP already burned through most of the short liquidity. Despite this, the rally is expected to continue, copying the model of ZEC. Potentially, ICP is seen as reaching $20 in the case of an ongoing short squeeze and more active trading.

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