Key Takeaways
What’s driving Story Protocol’s resurgence?
Increased outflows of $46.8 million and a 134% surge in derivatives volume indicate a renewed interest from traders and short-covering momentum.
What are the key indicators to watch for IP?
A decisive break above $7.5 could pave the way for a move towards $8.7, while weak buying pressure might push IP towards the $5.6 support level.
Story Protocol [IP] has experienced a significant bounce from $1.2 just four days ago, forming an ascending channel on the daily chart. The token has surged by 23.02% over the past 24 hours, reaching a high of $7.4 before retracing to $6.18 at the time of writing.
Trading volume has seen a notable increase of 108% to $382 million, indicating strong market participation.
Is this the beginning of a larger trend, or is it just a temporary bubble?
Whales Fuel Demand Recovery
AMBCrypto has noted that IP’s rally has been driven by a surge in demand on both spot and futures markets.
According to data from CoinGlass, Story has seen increased accumulation since the recent market downturn. Over the past three days, there have been more withdrawals compared to deposits on exchanges, indicating higher demand.
Source: CoinGlass
In the last three days, the altcoin has recorded $77.39 million in outflows compared to $72.61 million in inflows.
Over the past day, there have been $46.8 million in outflows compared to $40.53 million in inflows. As a result, the Spot Netflow stands at -$6.29 million at the time of writing, indicating higher outflows and strong accumulation.
This trend aligns with a resurgence in investor confidence across exchanges.
Futures Market Heats Up
A closer look at the derivatives market reveals that investors are rushing to strategically position themselves.
According to CoinGlass, Derivatives Volume has surged by 134.13% to $1.02 billion, while Open Interest has jumped by 20% to $166 million.
Source: CoinGlass
When both of these metrics rise in tandem, it signals an increase in leveraged participation.
Meanwhile, the Long/Short Ratio stands at 1.17, with 53% of traders holding long positions against 46% holding short positions. This indicates a slight bullish bias across major platforms like Binance and OKX.
Source: Coinalyze
Can IP Sustain These Gains?
According to AMBCrypto, Story Protocol’s token has rebounded as buying pressure has surged across participants in both the spot and futures markets.
The altcoin’s Stochastic RSI has bounced back from oversold levels and currently stands at 39. Additionally, its Relative Vigor Index (RVGI) has made a bullish crossover at -0.19.
Source: TradingView
Typically, when these indicators move out of oversold territory, it signals increasing buyer dominance and strengthening upward momentum.
If market conditions remain stable, the current trend could continue, with IP potentially making further gains on its price chart.
A continuation of the trend may see IP reclaiming $7.5, which could bolster bullish sentiment towards targeting the $8.7 resistance level. However, any renewed selling pressure could see IP finding support around $5.6.
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