Story (IP) Price Nears Critical Level as Descending Triangle Tightens

Key Takeaways

• Falling triangle formation signals a potential reversal.
• RSI shows oversold conditions, hinting at a possible bounce.
• Elliott Wave count suggests an upcoming breakout scenario.

The price of STORY (IP) has been forming a falling triangle pattern after a significant impulsive rally.

The 4-hour chart suggests that the corrective phase might be nearing its conclusion, while the 15-minute chart presents possible breakout scenarios.

STORY Price Analysis

The one-hour chart shows that STORY’s price action has been consolidating within a descending triangle since the $8 peak on Feb. 20, indicating a corrective wave sequence after a strong five-wave impulsive rally.

The retracement found temporary support at approximately $3.89 near the 0.618 Fibonacci level, aligning with the lower boundary of the triangle. 

This confluence of support suggests that the STORY may be nearing the end of its corrective wave.

The correction structure resembles a classic ABC pattern, with wave C bottoming at the triangle’s lower trendline. The 1-hour Relative Strength Index (RSI) has remained near oversold conditions, reinforcing the possibility of a reversal. 

However, for a confirmed bullish shift, the price must break above the triangle resistance and reclaim key Fibonacci retracement levels.

A decisive move above the 0.5 Fibonacci level at $4.67 would indicate the beginning of a new upward trend. Conversely, failure to hold above the 0.618 retracement could lead to another leg downward, testing the triangle’s lower boundary around $3.50.

The price structure suggests two scenarios: a direct breakout above the triangle resistance, confirming the end of the correction, or one final dip to test the lower triangle boundary before a bullish reversal. The coming sessions will be crucial in determining the next major move.

STORY Price Prediction

The 15-minute time frame chart highlights a potential breakout setup, with STORY attempting to break out of a smaller descending triangle within the broader pattern.

The short-term Elliott Wave count suggests that STORY formed a leading diagonal in wave (i) of a new bullish cycle.

If the price successfully breaks above the triangle resistance, the next key target will be the 0.5 Fibonacci retracement at $4.67, followed by the 0.382 retracement at $5.46. A clean breakout would likely see wave (iii) extend towards the $4.80–$5.00 region, aligning with the projected path on the chart.

However, if the price gets rejected at resistance, a final push downward to complete wave E of a larger ABCDE corrective pattern is possible. This scenario could drive the price toward the $3.40–$3.60 region before buyers enter.

The RSI on the 15-minute chart is hovering near neutral territory, suggesting a buildup of momentum. A spike in volume upon breakout would confirm a bullish reversal.

Meanwhile, low-volume rejection at resistance could indicate a continuation of the correction.

The primary scenario favors an upward breakout towards $4.67 or higher. However, traders should remain cautious of one final dip before a true reversal.

Key Levels to Watch

• Immediate Resistance: $4.67 (0.5 Fibonacci retracement).
• Major Resistance: $5.46 (0.382 Fibonacci retracement).
• Immediate Support: $3.89 (0.618 Fibonacci retracement).
• Critical Support: $3.50 (falling triangle support).
• Short-Term Target: Above $4.80 if breakout confirms.
• Invalidation Zone: Below $3.50, signaling further downside.