While the overall crypto market weakened, ICP bucked the trend. Foreign media reports suggest this surge wasn't solely driven by short-term speculation; the spot market had seen several days of accumulation, coupled with a rebound in perpetual contract longs, giving the price the potential to continue rising in the short term.

Spot prices have seen net inflows for five consecutive days.

The report noted that prior to the recent 24-hour surge, the ICP spot market had recorded net buying for five consecutive days, totaling approximately $5.67 million, with an average daily net inflow of about $1.13 million. Such fund flows typically indicate some support at lower prices, rather than being driven solely by leveraged funds.

In terms of timing, spot buying volume preceded price increases, which is one indicator the market's assessment of the sustainability of this rebound. If spot buying continues, the short-term upward trend is more likely to continue.

Perpetual contract data shifts to bullish

Sentiment in the derivatives market is also improving. Data shows that open interest in ICP contracts rose above $15 million in the past day, and the weighted average funding rate turned positive, indicating that leveraged funds are generally more bullish.

Meanwhile, the long/short ratio for perpetual contracts rose to 1.12, marking its first sustained return to above 1 since April 18. A long/short ratio above 1 typically indicates that buying volume exceeds selling volume. The report notes that, with the exception of Binance, most major trading platforms showed a buying dominance.

$3.15 becomes a key level to watch in the short term.

The liquidation heatmap shows a significant concentration of potential liquidation zones above the price. These areas often act as a pull force on the price action, especially when bullish momentum is dominant, making it easier to push prices higher to test new levels.

The report identifies $3.15 as a key short-term level to watch. However, a liquidation zone also exists below the price, indicating that pullback pressure has not disappeared. It's just that, based on the current distribution, the downward pressure from the liquidation zone is temporarily weaker than that from the upward pressure.

Overall, the recent surge in ICP prices is supported by net inflows of spot goods, an increase in open interest, and a positive long-short ratio. Foreign media believe that as long as spot demand does not weaken significantly, this rebound still has room to continue.