The crypto AI sector’s market capitalization edged lower in recent days, slipping from $22.61 billion on May 9 to $21.01 billion, even as the segment remained up 21% over the past month. Performance among the six largest tokens by market value was mixed, with Internet Computer (ICP) standing out as the weakest over the latest week.

Market Outlook

Sector-wide momentum cooled after a strong monthly advance, and ICP underperformed its peers in the short term. The token fell 5.35% over 24 hours and declined 8.7% week over week. Some market participants linked the pullback to a trading-pair change at a major venue: Coinbase delisted ICP/USDT, a non-USD pair. The exchange has not halted all ICP-related services, but the adjustment coincided with recent price pressure.

Analyst Views

A recent AMBCrypto report highlighted a bearish structure on higher timeframes and urged caution despite a prior rebound that had lifted ICP to $3.7. That caution has been reinforced by subsequent price action. After reaching a high of $4.09, ICP has retraced by 30.8% and slipped back into what analysts described as a local range between $2 and $2.84.

According to that assessment, the rejection just above $4 aligned with an existing bearish swing structure, indicating supply overwhelmed demand near that zone. The combination of a higher timeframe downtrend and the swift reaction at the $4 area led analysts to conclude that further losses were plausible in the near term.

Key Factors

Technical levels remain central to near-term expectations. The $2.8 region has acted as both support and resistance since December 2025, suggesting it could be a pivot for price behavior. Analysts noted that a bounce from this level is possible given its history as an inflection point. However, they also cautioned that any rebound could prove short-lived if profit-taking accelerates.

On-chain positioning strengthens that view. The report referenced the Market Value to Realized Value (MVRV) ratio—specifically time-bound measures used to gauge whether different holder cohorts are in profit or loss. Since October 2025, whenever ICP’s 365-day MVRV moved into positive territory, notable corrections followed. This pattern repeated in November, January, March, and May, implying that once tokens that had moved at least once in the prior year returned to profit amid a broader downtrend, holders tended to lock in gains, triggering sharp pullbacks.

Future Trends

If the established pattern persists, analysts see scope for ICP to revisit the $2.2–$2.3 area later this month. That outlook is grounded in the confluence of elements flagged in the report: a bearish higher timeframe structure, resistance and supply near $4, the re-entry into a $2–$2.84 trading range, and on-chain profitability signals that have repeatedly preceded selloffs.

While a near-term bounce from around $2.8 cannot be ruled out, the weight of technical and on-chain evidence cited by analysts points to ongoing two-way volatility within the identified range, with downside tests remaining a risk if profit-taking resumes. Market observers emphasized that these are probabilistic scenarios rather than certainties and should be interpreted as an outlook informed by recent price behavior and holder dynamics.

Summary

In summary, the crypto AI sector has eased from its early-May peak but retains notable month-on-month gains. Within that backdrop, ICP has lagged its large-cap peers, a trend that analysts linked to both market structure and venue-specific developments such as the delisting of the ICP/USDT pair at Coinbase. The rejection above $4 and the sector’s mixed performance feed into a cautious stance, with the 365-day MVRV pattern and the $2–$2.84 range framing expectations. Should historical dynamics repeat, a retest of the $2.2–$2.3 lows later this month remains part of the base case presented by analysts, while any interim rebounds may be constrained by ongoing profit-taking.