- Story [IP] has a bearish structure, but it could bounce towards $3.4
- Liquidation heatmap hinted at a potential bearish reversal in the coming days
Story [IP] has shed 27% of its value since 11 June. However, the token bounced slightly over the past three days, with a 12.89% rally that alleviated losses incurred recently. Despite this uptick, however, the market structure was still firmly bearish at press time.
The volatility around Bitcoin [BTC] has affected the rest of the market.
Given the bearish outlook of IP, traders should be on the lookout for selling opportunities. AMBCrypto highlighted key resistances that need to be reclaimed as support before the token can establish an uptrend.
Story IP price prediction – Bears expected to decide the next move
Source: IP/USDT on TradingView
In May, IP bulls tried to establish an uptrend. They were able to make a bullish market structure shift and also drive the price above the moving averages. This attempt was reversed later in the month.
The losses sustained over the past two weeks drove IP to new lows. A set of Fibonacci retracement levels was plotted based on the drop. The $3.41, $3.61, and $3.89 levels would be the key retracement levels expected to serve as resistance.
The OBV has climbed higher over the past week, but the Awesome Oscillator continued to signal bearish dominance. The conflicting signals can be resolved using the price action, especially since the 1-day market structure remained bearish.
A retest of the $3.5-$3.6 supply zone would likely offer a selling opportunity.
The liquidation heatmap agreed with this conclusion. The 1-month lookback period heatmap highlighted the $3.2-$3.3 area, and the $2.4 area as the nearby notable magnetic zones.
Price is attracted to liquidity. The build-up of liquidations above the local high would likely be swept before the next bearish move. This could even see the bounce go as high as $3.41 – The 50% retracement level.
Traders should remain nimble when looking for selling opportunities. The week ahead is likely to be volatile, which could be profitable if navigated correctly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
