Story’s 12% profits wiped out in 24 hours – Is IP’s hype fading?

• IP was down about 12.74% in the last 24 hours at press time, with price trading just above $3.
• More shorts forming just below the $3.5 level, with more downside potential following long leveraged orders below $3.

Story Protocol [IP] plummeted by a huge margin with price ranging at $3.08, a price decline of 11.8% within 24 hours. The token also decreased by 24.2% per week and 26.4% in the last two weeks.

Its 26.4% monthly losses in June followed a trend which started in March (-12.8%), April (-15.6%). However, it reached its highest peak of 125.5% in February and slight gains of 4.36% in May.

The Q2 quarterly returns declined by 35.7% compared to the previous quarter, where it had made a 96.7% increase.

Source: CryptoRank

Within a short duration of three months, the Story Protocol token has declined by 43.9% since its ATH of $7.29. Nonetheless, IP was up 26.3% year-to-date.

This proved that the boom in February had not been completely eliminated, but it was quickly narrowing.

Price drops spark spikes in liquidations

As Story Protocol token’s trend showed reduced momentum and constant sell pressure, the $3 level faced a likely breakdown. Traders needed to wait longer until the price showed signs of life, as it continued to bleed.

Meanwhile, the liquidation heatmap underlined a crowd short liquidity just below $3.60. This was a probable force of downward pressure. With price declining, visible long liquidations were seen at $2.90 and $2.50.

The levels were major areas where potential buyers could fight at.

Source: Coinglass

The level of $3.00 had become a neutral pivot. That way, an overshoot higher would elicit short squeezes up to $3.60, but a move below $2.90 may give way to more rapid liquidations to $2.50.

In that respect, price would be attracted to the highest concentration of liquidity.

Where is IP’s price headed?

The breakout of Story Protocol price was halted at the support at $3.50 a sign of a significant bearish continuation. The continuation of the trend was in descending triangle, with the trendline as the top.

The breakdown of the zone of support at the price range of $3.50- $3.60 triggered a bearish movement and could cause the price to plunge against the $2.98 support level.

Any break under $2.98 could create space that leads to a fall toward a larger flat into the resistance/demand range of $1.91.

Source: Trading View

On the other hand, reclaiming the $3.60 mark would weaken their reliability and trigger a retest of the trendline near the $4.00 level. The MACD indicator was very bearish.

This was because of the expanding gap of the signal line beneath the zero mark and the excesses of the histogram in red.

This sustained an extension on the opposite direction unless bullish diversity was created.

Even though the tone leaned toward the bearish side, there was a tendency to bring the buyers to the scene as price approached $2.98.

Therefore, a response at the $3 zone would play a critical role when determining whether IP stabilizes or continues falling lower.