Key Takeaways
IP’s trading volume soared by 1,890%, showing immense participation. The altcoin’s recent rally is potentially driven by Heritage Distilling’s buyback and its Upbit listing.
Story Protocol [IP] is making waves with its impressive performance of late.
On the 31st of August, the altcoin topped the market with most gains, even as major assets like Bitcoin [BTC] and Ethereum [ETH] struggled to gain momentum.
Current price momentum
At press time, IP stood at $7.75 and has recorded a price surge of over 35% in the past 24 hours.
This impressive performance has triggered massive participation from investors and traders, leading to a record 1,890% surge in trading volume compared to the previous day.
The substantial surge in trading volume, while the price continues to climb, indicates strong strength in the asset and also hints at bullish momentum.
Why is IP rising?
The reason behind Story’s surge is Heritage Distilling’s buyback of $82 million worth of IP at the $3.40 level, with its listing on the Korean exchange Upbit, (which is currently driving 30% of daily volume).
Alongside this, active participation of giant market makers, including Wintermute and Selini, are providing tight spreads and constant order refilling.
That’s not all, Story Protocol is also backed by a16z [AI16Z], which is set to fund $220 million. In addition, it has been added to the Grayscale Trust, further strengthening IP’s credibility in the market.
Whale interest in the asset has also skyrocketed. Bockchain transaction tracker Lookonchain revealed that a crypto wallet address (0x8A1d) withdrew 433,176 IP tokens, worth approximately $3.7 million, from Bybit.
This whale transaction, amid current market conditions, hints at an ideal buying opportunity.
Story Protocol: What’s the road ahead?
According to AMBCrypto’s technical analysis, IP has finally broken out of the key hurdle at the $7.10 level, opening the path for further upward momentum.
On the daily chart, the asset appears to have tested this $7.10 resistance level more than three times, each time facing a downside move. However, with record participation, it has finally cleared this hurdle.
Source: TradingView
The daily chart indicated that IP appeared to be undergoing a price correction after reaching the $8.94 level. Price may retest the breakout area before continuing its upward momentum.
Based on recent price action, if IP holds above the $7.10 level, it could soar 30% and reach $9.10 or even higher. However, a quicker rally would only be possible if IP clears another hurdle at the $9.10 level.
With this rally, IP’s Supertrend indicator has turned green and is hovering below the asset’s price, suggesting that the asset is in an uptrend with strong upside momentum.
Meanwhile, the Relative Strength Index (RSI) stood at 67, still below the overbought territory, suggesting that IP has enough room to continue its upside momentum.
On-chain metric flashes mixed sentiment
Given the current market sentiment, it appears that traders are closely following this bullish trend.
According to on-chain analytics firm CoinGlass, IP’s major liquidation levels are at $7.62 and $8.20. These levels are not just key liquidation points, but also areas where traders are over-leveraged.
Source: CoinGlass
Over the past 24 hours, they have built $3.57 million worth of long positions and $2.39 million worth of short positions, making it clear that bulls are dominating the asset.
The only concern or red flag that appears is the inflow of IP. Data from Spot Inflow/Outflow shows that exchanges have recorded an inflow of $2.91 million worth of IP tokens in the past 24 hours.
Source: CoinGlass
These inflows suggest ongoing profit-taking among investors and long-term holders following the 35% price uptick.
