Following its launch, Story Protocol native token IP has surged by 150%. However, recent technical analysis suggests a potential correction might be on the horizon.
The token’s rally has established it as one of the standout performers in the crypto market this week. Trading data shows $IP/USDT reaching significant highs, though technical indicators are now hinting at possible exhaustion in the upward momentum.
Technical Analysis for IP Points to Potential Retracement
A closer examination of the hourly chart reveals a critical support level around $2.27, which previously served as resistance. This price point has now transformed into a key area that bulls need to defend. Adding to the technical landscape is a rising trendline that has been providing dynamic support throughout the recent uptrend.
Technical analysis points to a potential correction of approximately 27-30% from current levels. Such a retracement, if it materializes, would bring the price down to test the rising trendline near $2.40. T
his pullback could be considered a healthy consolidation within the broader uptrend, allowing the market to establish stronger support levels.
Risk Factors to Consider for Story Protocol
The most significant risk factor lies in a potential breakdown below the $2.27 support level. Such a move could trigger a cascade of stop-loss orders, potentially accelerating the downward pressure. Traders should pay particular attention to this price zone as it could determine the token’s medium-term trajectory.
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While the current structure remains bullish above $2.27, traders should exercise caution given the extended rally. A successful defense of this level could set the stage for another leg higher. However, a confirmed break below the rising trendline would likely lead to a deeper correction, potentially erasing more of the recent gains.
For now, all eyes remain on the critical $2.27 support zone and the rising trendline, as these technical levels will likely determine the next significant move in Story Protocol price action.
