Story (IP) Price Leads Crypto Market Recovery With Double-Digit Increase

Key Takeaways

• Story (IP) trades in a long-term descending parallel channel.
• The IP price trades inside a symmetrical triangle pattern.
• Is the IP correction over, or are new lows still likely?

The IP price has fallen over 50% since the start of May, culminating with a low of $2.44 in June.

However, IP bounced while the rest of the crypto market fell during the weekend, possibly because whales accumulated  nearly $50 million IP.

With that in mind, let’s analyze the price action and determine where the bounce will lead.

IP Price Analysis

The daily time frame chart shows that IP has fallen inside a descending parallel channel since the beginning of March.

These channels usually contain corrective movements, meaning an eventual breakout is the most likely outcome.

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Today, the IP price trades at the channel’s midline, making it unclear if it will bounce to its resistance trend line or fall to its support trend line.

The diagonal levels also coincide with the horizontal supports and resistances at $1.60 and $3.60, respectively.

Technical indicators give mixed readings. The Relative Strength Index (RSI) bounced and increased above 30, but has not generated a bullish divergence yet.

The Moving Average Convergence/Divergence (MACD) also bounced, but it has yet to make a bullish cross.

So, the daily time frame analysis gives an unclear Story price prediction, failing to determine whether a bounce or breakdown is more likely.

What’s Next for IP?

While the price analysis is undetermined, the wave count predicts a bearish IP price.

According to the count, IP is in the C wave of an A-B-C correction that started in March.

The sub-wave count (black) points to another low before the correction finishes.

A closer look at the movement shows the IP price is in sub-wave four of five, which has developed into a symmetrical triangle.

A triangle is the most common pattern for wave four and gives credibility to the wave count.

As a result, a breakdown from the triangle and a decline toward $1.60 are the most likely future outlooks.

If this proposed movement happens, it will mark the end of the long-term correction and lead to a long-term upward movement.

New Lows Incoming

The IP price has fallen within a long-term channel since the start of March.

Today, the IP price bounced, leading to the crypto market recovery.

However, the wave count shows a bearish trend and new lows near $1.70.