ICP jumps 9% as 24h volume spikes 93% on burn plans

Internet Computer (ICP) token rose 9% in the past 24 hours as trading volume increased 93%, according to market data, extending gains amid a broader cryptocurrency market recovery.

The token retested a pivotal supply zone as it moved higher from a seven-day low, placing it among the top altcoin gainers for the day. The price traded at levels last seen in mid-February, though it pulled back from its peak during the period.

The gains mirrored broader market sentiment, with Bitcoin (BTC) testing highs amid increased risk appetite driven by Nvidia-related developments. Tokens associated with artificial intelligence narratives, including NEAR, Bittensor, and Render, also posted gains.

From a technical perspective, the retest of the key level marks a potential reversal point. A breakout from a long-term downtrend line appears to be developing, according to chart analysis. The Relative Strength Index on the daily chart indicates potential for further upward movement, while the Moving Average Convergence Divergence indicator displays signs of bullish momentum.

However, the price remains below key moving averages, with the 50-day and 100-day simple moving averages presenting overhead resistance. Support levels are located at recent lows, according to technical analysts.

The price movement coincides with a recent tokenomics upgrade proposal from the DFINITY Foundation for the Internet Computer network. The proposal seeks to introduce revenue-funded token burns, with a portion of cloud engine fees being removed from circulation. The plan would implement usage-based node rewards, tying supply reduction directly to network demand.

Under the proposed model, most cloud engine revenue would be allocated to node providers. The Internet Computer network aims to shift from fixed subsidies to performance-linked incentives, a structure that resembles models used by other cloud compute-focused blockchain networks.