Key Takeaways
IP surged by 10% in 24 hours as its Total Value Locked rose 12% to $25.5M. Liquidity clusters above the spot price could attract further upside, but volatility remains a risk.
Story [IP] has been one of the top gainers in the market lately. In fact, the token’s price has jumped by more than 10% in the last 24 hours alone. What makes this move more interesting is that its total value locked also hiked by 12%, pushing past $25.5 million on the charts.
In other words, apart from IP’s bullish price action, there is also deeper capital commitment backing the move from investors and traders alike.
TVL signals greater market confidence
Total Value locked is often viewed by many market players as a proxy for user commitment.
As more capital flows into a network, the surge usually signals that investors are confident enough to lock in liquidity, rather than chase quick position exits.
In IP’s case, the sharp hike suggested that users are not only trading the token, but also embedding themselves deeper into the ecosystem. Such a finding gives the ongoing rally firmer ground to stand on.
Source: DeFiLlama
IP Liquidity maps hint at next target
At the same time, AMBCrypto’s analysis of Coinglass liquidity data hinted at a bullish bias. The liquidity maps indicated several liquidity clusters sitting just above the press time trading range.
Based on historical observations, markets have a tendency to drift towards these zone. Especially since large concentrations of orders naturally attract price action.
If buyers keep pressing on, those zones could act like magnets and push IP prices higher in the the near future to test higher resistance zones.
Source: Coinglass
A note of caution…
Alas, rallies like this rarely go in a straight line. When liquidity builds above the spot price, it can just as easily turn into a pocket for profit-taking. That means volatility is almost a given if traders decide to cash in quickly.
For now, spot volumes remain solid. However, it’s still worth asking whether smaller investors will continue to follow the whales who appear to be leading the charge.
So, where does this leave things? Well, the bullish case rests on two fronts – Steadily rising TVL and clear liquidity targets on the chart.
Together, they hinted at further upside potential. However, if retail momentum cools down, the rally could just as easily lose steam.
Either way, IP’s performance this week has made it a name that both traders and institutions are watching closely.
