Story Protocol’s native token, IP, is showing signs of short-term strength, but the broader trend remains uncertain. While bulls have managed to reclaim some ground, conflicting technical signals and weak demand suggest that the recovery may be losing steam.
📉 Bullish Break Meets Bearish Resistance
On the 12-hour chart, IP recently formed a bullish market structure break, climbing to a new local high. However, this move is being challenged by a larger bearish swing structure, which continues to dominate the trend. Trading volume spiked during the breakout but has since tapered off, hinting at fading momentum.
The On-Balance Volume (OBV) has yet to reclaim earlier highs, signaling that buying pressure remains subdued. Meanwhile, the Relative Strength Index (RSI) is still hovering below the neutral 50 mark, reinforcing the idea that bulls are struggling to gain control.
📊 Key Resistance and Support Levels
- Immediate Resistance: $3.34 — a level that has rejected price advances in the past.
- Higher Resistance Zones: $3.64 and $3.86 — potential reversal points if the rally extends.
- Support Cluster: $2.42–$2.5 — a dense liquidity zone that could attract buyers if price dips.
- Nearby Entry Zone: $2.85 — another liquidity pocket where traders may look to go long with tight stop-losses near $2.78.
These levels are derived from recent Fibonacci retracement zones and liquidation heatmaps, which show strong magnetic zones both above and below the current price of $2.94.
⚖️ Demand Lags Despite Structural Shift
Although the short-term structure has turned bullish, the lack of strong demand could stall further gains. The market appears to be in a wait-and-see mode, with traders cautious amid broader altcoin weakness and Bitcoin’s inability to hold above $110K.
If IP falls below $2.8, sentiment could quickly flip bearish again. Conversely, a clean break above $3.34 with volume could reignite bullish momentum.
