Here’s why ICP traders should stay wary DESPITE its 60% price rally

Internet Computer [ICP] has rallied by a whopping 60% in a week and was up 15.8% in 24 hours at press time. According to Glassnode, the AI sector has stood head and shoulders above others in terms of performance over the said time period. The sector saw a 26% hike in market capitalization. The second-highest weekly growth was registered by L2 tokens with figures of 13.9%. In a recent report, AMBCrypto had highlighted the importance of the $3-zone as a cluster of short liquidations around a key psychological level. If $3 is breached and flipped to support, the report claimed that buyers can enter. In the last 36 hours of trading, this level was flipped to support. This means the range-bound caution can give way to bullishness. ICP bulls must remember to take profits The former range near the $2 swing low has been breached, the AI sector is chugging along remarkably well, and the altcoin has rallied by 60% in a week. Now, while things are going well for the bulls, they shouldn't be swept away by the euphoria. The long-term trend remains bearish. The daily chart highlighted the bearish swing structure in place in 2026. The ongoing rally is only a relief rally, and it can extend to $4.21 or even as high as $4.82. Traditional crypto wisdom maintains that bear market rallies can brainwash participants into thinking the bull market is here again, before pulling the rug out from under their feet. ICP traders will want to be savvy during this phase of the market and take it step by step. The range breakout is done, and key Fib levels are under siege. Holders can look to sell in the golden pocket overhead. A breakout past $4.82 is needed to signal a bullish swing structure break. Final Summary Combined with Bitcoin's ascent above $80K, altcoins such as ICP have ideal conditions to flourish. Despite its strong showing recently, altcoin's bulls should remember to take profits.