Internet Computer Protocol (ICP) captured the second place among AI and big data tokens after the protocol revealed its plan to enhance the tokenomics by reducing inflation. With the excitement surrounding the reduction of inflation, ICP is testing a critical resistance level.
ICP, a decentralized cloud blockchain that hosts full-stack applications and websites on-chain, toppled NEAR protocol and captured the second place as the largest AI and big data token. ICP rallied and took over NEAR’s position after the DFINITY Foundation, a Swiss-based non-profit organization and developer of Internet Computer (ICP), released the MISSION70 whitepaper, which aimed to reduce the ICP inflation by at least 70%.
According to the whitepaper, the DFINITY team unveiled its plan to fight inflation by cutting short the supply while accelerating the demand. The supply of tokens being released into the market will be controlled at minting. “We estimate that the supply-side measures reduce ICP minting from 9.72% (January 2026) to 5.42% (January 2027), a 44% reduction,” read the whitepaper.
Mission 70 and Accelerating the Internet Computer Economy whitepaperTo achieve the overall Mission 70 target of a 70% inflation reduction (from 9.72% to 2.92%), an additional demand impact of 26% is required beyond the 44% reduction from supply-side measures. At current price levels, this requires increasing the cycle burn rate from the current
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With the release of the whitepaper, ICP prices have started to appreciate. On the daily chart, the token is testing the 200-day moving average, which is a long-term indicator. The last time the token was above this critical resistance level was back in January 2025. Since then, ICP has tested this level multiple times but has not been able to push past it.
ICP might not go past the 200-day MA this time again, as the Relative Strength Index indicator flashes overbought conditions, reading 71 on its scale. Based on the assumption that the market corrects the overbought prices, ICP will look for support near $2.9.
