The crypto AI sector has seen a slight overall decline in recent days. AMBCrypto, a foreign media outlet, commented that Internet Computer (ICP) has underperformed among major tokens, and its price may further decline after the short-term downtrend continues.

Falling back into the range

The article notes that the total market capitalization of the crypto AI sector has decreased from $22.61 billion on May 9 to $21.01 billion, but is still up about 21% on a monthly basis. Among the top-performing tokens in the sector, ICP has been the weakest performer over the past week, falling about 5.35% in 24 hours and about 8.7% in 7 days.

AMBCrypto believes that ICP's rapid decline after rising to $4.09 has re-entered the local range of $2 to $2.84. The article states that this pullback is consistent with a bearish structure on higher timeframes, with significant selling pressure also appearing above $4.

Pressure around $2.8

The $2.8 level has acted as both support and resistance multiple times since December 2025. The article suggests a potential technical rebound at this level, but the rebound may not be long-lasting.

365-day MVRV repeats old patterns

The article cites the 365-day MVRV indicator, stating that since October 2025, whenever the ICP indicator returns to positive territory, it is often followed by a rapid pullback. Similar situations occurred in November 2025, January, March, and May 2026.

This indicator is typically used to observe whether holders have re-entered a profitable state. The article argues that when ICP that has undergone transfers in the past year returns to a profitable range, some holders will choose to take profits, thereby increasing downward pressure on prices.

Based on the aforementioned price movement and on-chain valuation signals, AMBCrypto believes that if this historical pattern continues, ICP may test the $2.2 to $2.3 range later this month.