ICP Rebounds as DFINITY Unveils Caffeine, an AI-Powered Web3 Platform
The Internet Computer (ICP) token staged a late-day recovery on July 15 following the official launch of Caffeine, a next-generation AI-enabled Web3 platform developed by the DFINITY Foundation. The announcement came during the “Hello, Self-Writing Internet” event held in San Francisco.
Initially, ICP fell to $5.27, extending a bearish 24-hour trend that began with heavy overnight selling. However, renewed optimism around the Caffeine launch fueled a rebound, with the token closing at $5.4324, narrowing its daily loss to 3.47%.
Caffeine aims to revolutionize decentralized application development by allowing users to create dapps using natural language prompts, removing the need for traditional coding. This feature aligns with DFINITY’s broader vision of integrating on-chain AI with Web3 usability.
Overnight, the token dropped from $5.39 to $5.20 amid selling volume exceeding 850,000 contracts at around 03:00 UTC. Momentum began to shift after 14:30 UTC, as institutional-sized trades lifted prices, particularly during high-volume intervals at 14:52, 15:03, and 15:29 UTC.
Key support emerged in the $5.20–$5.28 range, where buyers repeatedly stepped in. Resistance remains firm around $5.40–$5.42, a zone that has capped upward movement in recent sessions.
Bullish sentiment was also reinforced by two strategic developments:
- DFINITY burned over 1 million ICP tokens, tightening circulating supply.
- The launch of vetKeys, a new privacy protocol designed to enhance data security on the blockchain.
With Caffeine live and ICP holding above recent lows, analysts say the token may soon challenge the $5.40 resistance area again, supported by improving fundamentals and expanding utility across the network.
📈 Technical Overview
- Daily Loss: –3.47%
- Price Range: $5.2115–$5.50
- Current Price: $5.4324
- Support Zone: $5.20–$5.28
- Resistance Level: $5.40–$5.42
- Catalysts: Caffeine launch, token burn, vetKeys rollout
- Sentiment: Turning bullish as volume and innovation drive renewed interest
