Story (IP) Price Heats Up, But On-Chain Signals Hint at Weakness Behind the Rally
Story (IP) is on fire with a sharp rally, but on-chain data suggests the momentum may lack strong support. A pullback looms unless demand strengthens.
Story (IP) is among the standout performers in today’s market, with its price soaring nearly 10% in the past 24 hours.
Despite the price rally, on-chain indicators suggest caution, as sustained buying pressure may not fully support the surge.
Bearish Divergence Hits IP Despite Price Surge
IP’s Chaikin Money Flow (CMF), which tracks the volume-weighted inflow and outflow of capital into an asset, has steadily declined even as IP’s price continues to climb. It sits below the zero line at -0.04 at press time, forming a bearish divergence.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter .
IP CMF. Source:
TradingView
Typically, the CMF tracks the flow of capital into an asset, so when it declines while prices rise, it suggests that the rally lacks solid support from sustained demand.
When the CMF falls while prices climb, it suggests that buying is driven more by short-term hype than by sustained investor conviction. If this continues, IP’s recent gains could be at risk.
Further, the coin’s negative funding rate lends credence to this bearish outlook. According to Coinglass data, IP’s funding rate sits below one at -0.116% as of this writing.
IP Funding Rate. Source:
Coinglass
The funding rate is used in perpetual futures contracts to keep the contract price aligned with the spot price. When the rate turns negative, short traders (those betting on price declines) dominate and are paid by long traders to maintain their positions.
IP’s low funding rate highlights strong bearish sentiment in the derivatives market. Despite its rally over the past day, futures traders are positioned for a decline. This shows a lack of confidence in its mid-to-long-term prospects.
Weak Demand Threatens Near-Term Dip
With no demand backing IP’s rally, it is at risk of a significant pullback once the general market’s momentum weakens. In this scenario, the coin’s price could plunge to $5.43.
IP Price Analysis. Source:
TradingView
On the other hand, if buy-side pressure surges, IP could rally to $6.54.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
As tech stocks plummet, Goldman Sachs issued a bullish report on US stocks, but after reading it, people became even more worried...
Goldman Sachs strategist Tony Pasquariello released a bullish report, stating that market breadth is "not as bad as reported." However, the report references the internet bubble twice for comparison. Behind the tactical bullishness lie multiple concerns such as slowing profits, a surge in stock supply, and quarterly crowded positions among the "Magnificent Seven."
Apple (AAPL.US) launches wall-mounted hub HomeView to enter the smart home market; analysts: may generate new income for the services segment
Apple launches a wall-mounted hub to enter the smart home market. Analysts say it may bring new revenue to the services segment, and a paid Siri AI is on the horizon.
U.S. IPO Preview｜Primagrove: Soaring Performance with a 17-Fold Increase, but the $17,000 Cash Pool Raises Concerns
From software outsourcing to integrated software and hardware.
60% of stocks have fallen into a bear market, the seven tech giants are holding up the S&P alone! BTIG: US stocks may be just a "gentle push" away from collapsing
The S&P 500 is just one step away from its all-time high, but under the surface, turbulence is brewing: 60% of its components have already entered a technical bear market, and only 30% have outperformed the index, the lowest since 1991. All of this is being supported solely by the seven major tech giants—which is, in fact, the biggest risk. With crowded positions and the semiconductor sector mirroring the path of the 2000 bubble burst, an accelerated decline could be triggered during the upcoming earnings season at the end of the month. When the market is standing on just one final leg, it doesn't take much force to topple it.
Crypto prices
More
