Icp Price Drops Below $3: What’s Next for Internet Computer?

Current Price Situation

Everyone Knew That Internet Computer Investors Had Little To Celebrate This Year, With The Cryptocurrency’s Price Dropping Below $3 Recently. This Happened After Internet Computer Broke Above A Long-Term Descending Triangle In Early November And Reached Over $9, But Later Declined Below 9 On November 11. Internet Computer Investors Are Now Asking Themselves: What Next? Icp Investors Are Currently Watching, As Internet Computer’s Price Has Been Falling Steadily To $2.90, Marking A New Yearly Low. People Are Asking Themselves Whether This Downward Trend Will Continue Into 2026.

Deflationary Mechanics

ICP Is Designed To Be Deflationary, Which Means That Increased Network Usage Leads To Higher Burn Levels And Lower Supply. However, This Year Saw Over 20 Million Tokens Added To The Supply, With Only 1.6 Million Burned. This Imbalance Is Due To The Network’s Burn Rate Being At Its Lowest Level Since 2024. This Was A Surprise To Many People, And Now Everyone Is Wondering How To Improve The Network’s Deflationary Mechanics.

DFINITY Foundation’s Response

The DFINITY Foundation Realized Internet Computer’s Decline And Launched **Caffeine AI** To Address It. The Goal Was To Drive Real Usage By Making Building And Running Apps Fully On-Chain Easy As Promping An AI. However, While The Initial Launch In November Gave Some Positive Vibe, It Hasn’t Resulted In Sustained Growth In On-Chain Usage Yet. Many People Are Wondering Whether This Strategy Will Eventually Pay Off.

Outlook For 2026

Investors Will Be Watching For A Clear Year-Over-Year Drop In Net Inflation And Faster Growth Rate In Burned ICP Compared To Minted. If Internet Computer Does Not Improve, A Further Decline In Its Price Is Likely. Internet Computer Investors Are Now Focused On Seeing Positive Results Next Year.

Technical Analysis

Internet Computer Needs To Bounce Off The Key Horizontal Support And Regain Bullish Momentum To Turn The Situation Around. To Confirm A Positive Shift, It Must Break Out Above The Last Rejection Zone At $3.11. People Think A Successful Breakout Could Take Icp To $3.50. If Not, A Drop Toward $2.74 Or Lower Could Be Possible In The First Quarter Of 2026.