- Story has a bullish swing structure on the 4-hour chart, but might struggle to move beyond $7.1
- Bitcoin’s price movements could influence whether IP forms a range or sees a breakout
Story [IP] has rallied 19.5% in 24 hours and its trading volume saw a 143% hike, according to CoinMarketCap data. The rise in trading volume alongside price gains suggests a bullish conviction in the short term.
The $7 resistance region, which rebuffed the bulls toward the end of February, was likely to be challenged once again.
Analysis showed that IP was likely to test $7.2 soon, but a breakout did not appear as likely.
Will IP form another range below the $7.2 level?
Source: IP/USDT on TradingView
The swing structure of Story on the 4-hour chart was bullish. Based on the rally last week, Fibonacci retracement levels were plotted. They showed that IP retested the 61.8% retracement level at $5.13 and bounced higher.
Despite the increase in daily trading volume, the volume bars were very small compared to the late-February rally.
This was a potential warning sign. Unless the OBV made higher lows and higher highs, IP might just be forming another range.
Source: Coinglass
The 1-week liquidation heatmap agreed with the range formation idea. There was a cluster of liquidity from $6.6-$6.9, which could pull IP prices slightly higher. The 1-week and lower period heatmaps also highlighted the $5 level as a strong magnetic zone.
It was unclear whether Story would retrace all recent gains. Bitcoin [BTC] retained a bearish structure on the daily chart. The recent US strategic crypto reserve news brought BTC prices into a resistance zone.
A retracement for BTC could affect IP’s trajectory, as could a move beyond $100k.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
