Internet Computer Price Prediction – Weak Demand Puts ICP at Risk of Falling Toward $1

Highlights:

• ICP is in the red as volumes fall, indicative of fading demand and cautious investor sentiment.
• Fed uncertainty and Japan’s rate hike reduce appetite for speculative assets, weighing on ICP.
• ICP tests key $2.20 support, with downside risks outweighing rebound prospects in current macro conditions.

Internet Computer (ICP), like most cryptocurrencies, is in the red today. At press time, Internet Computer was trading at $2.28, down 4.7% in the day. Internet Computer trading volumes are also down intraday, standing at $66.49 million, a decline of 6.33% in the day. The slight decline in volumes alongside the price can be interpreted to mean that holders are not selling aggressively and expect a rebound at some point in the future.

However, it also means that investor interest in ICP is low at the moment, a factor that could push the price lower if short sellers gain strength across the market. Looking ahead, the odds are high that ICP could be headed lower in the short to medium term. 

Federal Reserve Ending Forward Guidance Bad for ICP

One of the factors likely to push ICP lower is the macro environment, particularly news from the Fed. Yesterday, Kevin Warsh, while speaking at the end of the FOMC meeting, noted that interest rates would remain unchanged. He also pointed out that inflation remains high, which opens the way for the Federal Reserve to hike interest rates at some point in the future.

More importantly, the Fed Chairman noted that they will no longer be giving forward guidance. These two sentiments could see capital exit the cryptocurrency market for two reasons. The possibility of a rate hike makes high-risk assets unattractive, and cryptocurrencies like ICP fall into this category. By removing forward guidance, markets will be more sensitive to Federal Reserve communication, creating uncertainty that makes high-risk assets less attractive.

BREAKING: 🇺🇸 Fed Chair Kevin Warsh says the Fed is dropping forward guidance.

That means no more hints about future rate moves. Every decision now comes as a surprise. pic.twitter.com/vP1STaOmUr

— Ash Crypto (@AshCrypto) June 17, 2026

Japan’s Rate Hike Further Makes Speculative Assets Like ICP Unattractive

Still on the macro factors, Internet Computer and other cryptocurrencies are being affected by Japan’s decision to hike interest rates. Earlier in the week, Japan hiked interest rates from 0.75% to 1%, the highest level in decades. The implication is that the Yen carry trade, a major source of cheap capital for the global markets, is coming to an end. The rising cost of capital and overall uncertainty in the global economy could see capital flow more into lower-risk assets. This could put altcoins and even Bitcoin itself in a weak position going into the foreseeable future.

🇯🇵 Japan Raises Rates to 1% — Why Markets Could Feel the Pressure

The Bank of Japan’s rate hike may look small, but the impact could be huge.

Japan has been a major source of global liquidity for decades, with cheap borrowing fueling investments into risk assets worldwide.…

— Nehal (@nehalzzzz1) June 17, 2026

ICP Not Benefiting From Decentralized AI Hype

Beyond the macro environment, Internet Computer is in a weak position within the cryptocurrency market presently. While it has positioned itself in the fast-growing AI market, it is overshadowed by the bigger players in the decentralized AI space. As such, it is not benefiting heavily from the capital flow into AI cryptocurrencies despite the space continuing to show significant growth. 

ICP Could See a Short-Term Technical Rebound

However, there is a chance that Internet Computer will rebound from a purely technical perspective. That’s because after its extended selloff, short sellers might start exiting their positions out of caution. The fact that ICP has been in a sustained bear market could see buyers start coming in if it starts to flatline, as has been the case in recent weeks. The perception that the bottom is in could send ICP into a rebound in the short term.

#ICP has just CORRECTED lower and so we should now get further upward movement to complete a larger cycle correction higher.
The $ICP move up from here can be in 3 OR 5 waves to complete either WXY correction shown OR simple 3,3,5 Flat correction pic.twitter.com/RkxuCenuQG

— Matthew Dixon – Veteran Financial Trader (@mdtrade) June 18, 2026

Technical Analysis – ICP Trading at Multi-Month Resistance

Internet Computer is currently trading around the $2.20 multi-month support. If bears are strong enough to push ICP through this support, a correction to prices as low as $1 could follow in the short term.

However, if bulls take control and push ICP off support, a rally to $3.01 could follow. Of these two scenarios, a correction to $1 is more likely. That’s because the macro environment, especially high inflation in the US and Japan and rising rates, takes away the incentive for investors to get into high-risk speculative assets.