IP is the native token of Story Protocol, a novel Layer-1 blockchain that focuses on intellectual property on the internet.
It launched on Feb. 13 and is already one of the 100 biggest cryptocurrencies ranked by their market capitalization.
IP recovered well after its initial decline after launch. While the IP price started another correction after reaching a new all-time high on Feb. 20, its resilience relative to the rest of the crypto market gives hope for an eventual breakout. Let’s examine the charts and see how likely that is.
The two-hour time frame chart shows the IP price fell almost immediately after its launch on Feb. 13. However, the price reached its bottom after two days and has been increasing since. Following a nearly 500% rally, the IP price reached its all-time high of $7.99 on Feb. 20.
Even though the price has fallen since, it has shown resilience relative to the rest of the crypto market. The current IP price is roughly 40% below the all-time high and still creates higher lows.
However, developing a descending resistance trend line is worrisome, since it could signal that the trend is gradually turning bearish. The main support area is at $3.90, the breakdown below which could trigger a significant price decline.
Technical indicators are still bullish. The Relative Strength Index (RSI) is increasing and is above 50 while the Moving Average Convergence/Divergence (MACD) is nearly positive.
Therefore, the short-term outlook leans bullish.
Can IP Break out?
The wave count aligns with the bullish IP prediction, suggesting an eventual breakout is likely. This is mainly because the upward movement since Feb. 16 is a five-wave increase (red), albeit with a truncated wave five.
Additionally, the ensuing decline is a corrective structure, contained inside a descending parallel channel.
If the count is accurate, the IP price is now correcting because of its significant increase. After the correction ends, the most likely future outlook is an eventual breakout from the channel that leads to new highs.
Once the correction is over, an exact value for the high can be predicted more confidently. Currently, there is a preliminary target at $10.69, created by the 1.61 external Fibonacci retracement of the most recent drop.
Alternatively, closing below the $3.90 support area will invalidate this bullish IP prediction. Then, IP could fall to the next long-term support at $2.50.
Bullish IP Trend
The IP trend still looks bullish despite a 40% decline from the all-time high.
A breakout from the parallel channel will confirm this and could lead to an increase above $10.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
