Internet Computer Faces Support Test as Bearish MACD Persists Despite Development Boosts

I observe that Internet Computer (ICP) is currently trading at $5.01, with bearish MACD signals indicating renewed downward momentum despite recent positive developments such as the token burn and the launch of new AI development tools. These fundamental upgrades are typically bullish signs, suggesting that the project is progressing and potentially boosting investor confidence. However, the technical indicators, particularly the MACD in bearish territory, point to a short-term weakness that could lead to further price declines. The fact that ICP is testing critical support levels adds to the cautious sentiment among traders, as a breach of support could open the door for additional downside. The overall picture suggests that despite upward catalysts, the market sentiment remains cautious or somewhat bearish in the near term. From a broader perspective, the token burn and AI tools launch show active development and community engagement, which are positive for long-term value. Nonetheless, the immediate price action is influenced heavily by technical signals, which currently favor sellers. Therefore, traders should monitor support levels closely and be prepared for potential further declines if conditions do not improve. In summary, while the project fundamentals are promising, the current bearish technical setup indicates pending volatility. Careful risk management and close observation of support zones are advisable before considering new long positions. The market might need more bullish confirmation before reversing this downward trend.