ICP RSI Hits 2-Month High After 19% Surge: Pullback Ahead?

Internet Computer (ICP) emerged as one of the top-performing cryptocurrencies on January 14, with its valuation surging by over 19%. This rally propelled the ICP price above $4, marking its highest level since the beginning of December 2025, according to data from CoinGecko. The sharp increase boosted ICP’s market capitalization well beyond $2 billion, securing its position as the 57th-largest cryptocurrency by market cap. This performance reflects renewed investor interest and buying pressure in the short term.

Despite the impressive gains, a critical technical analysis tool suggests the rally may be overheating. The Relative Strength Index (RSI), which measures the speed and magnitude of recent price changes to gauge potential reversals, climbed to a two-month peak of almost 80 on January 13. As of the latest data from CryptoWaves, the RSI currently hovers around 73. The RSI scale ranges from 0 to 100, with readings above 70 traditionally indicating that an asset is overbought and may be on the verge of a decline. Conversely, readings below 30 suggest an asset is oversold and could present a buying opportunity. ICP’s elevated RSI, therefore, serves as a cautionary flag for traders, hinting that a potential pullback could be approaching as the market digests the rapid price appreciation.

Contrary to the warning from the RSI indicator, the sentiment among many analysts on the social media platform X (formerly Twitter) remains largely bullish. Earlier this month, user Bitcoinsensus identified a “massive bull flag” forming on ICP’s weekly chart. This technical pattern, if validated, could signal a continuation of the uptrend, with Bitcoinsensus envisioning a potential breakout targeting prices as high as $14. Similarly, the analyst using the moniker KNIGHT predicted a rally to $10 within the first quarter of the year, reinforcing the optimistic outlook for ICP’s near-term trajectory.

However, not all forecasts align with this bullish perspective. X user CAPT. PARA8OLIC TOBLERONE presented a more complex and cautious scenario. They anticipate that ICP could head south in the coming months, potentially dropping below the $1.30 level. Following this anticipated decline, the analyst projects a subsequent major bull run that could see the asset’s price skyrocket beyond $65. This divergence in analyst opinions—ranging from immediate continuation patterns to predictions of a deep correction before a new rally—highlights the uncertainty and speculative nature surrounding ICP’s price action in the current market environment.

Adding another layer to the analysis is data concerning exchange netflows for ICP. Information from CoinGlass shows that over the past several weeks, outflows from exchanges have surpassed inflows. This metric is significant because it suggests a trend of investors moving their ICP holdings off centralized trading platforms and into self-custody solutions, such as personal wallets. A dominance of outflows typically indicates reduced immediate selling pressure on exchanges, as assets in self-custody are less likely to be liquidated quickly. This behavior can be interpreted as a sign of longer-term holding conviction, which may provide underlying support for the price and align with the bullish forecasts from some analysts.

Conversely, rising exchange inflows are generally viewed as a bearish signal, as they indicate investors are depositing assets onto trading platforms—often a preparatory step for selling. The current net outflow trend for ICP, therefore, reinforces the potential for the bullish scenario to persist, at least in the near term. It creates a fundamental counterpoint to the overbought technical signal from the RSI, presenting traders with conflicting data points: one warning of a correction and another suggesting underlying holder strength and reduced sell-side liquidity.