Story (IP) Price Surges - But On-Chain Data Reveals Ominous Weakness Beneath the Rally
Story token's price action screams bullish—yet blockchain analytics whisper caution as smart money positions hint at potential reversal.
Behind the Green Candlesticks
On-chain metrics flash warning signs despite surface-level momentum. Large wallet distributions tick upward while retail FOMO fuels the pump—a classic setup that'd make any seasoned trader check their stop-losses.
The Institutional Whisper
Volume patterns show institutional players taking profits rather than accumulating—because why hold when you can sell the rally to eager newcomers chasing trends?
Tokenomics Tell the Tale
Network growth stagnates beneath the price hype. New addresses plateau while transaction volumes fail to confirm the breakout—another case of price outpacing fundamentals in crypto's endless cycle of hope and liquidation.
Bearish Divergence Hits IP Despite Price Surge
IP’s Chaikin Money FLOW (CMF), which tracks the volume-weighted inflow and outflow of capital into an asset, has steadily declined even as IP’s price continues to climb. It sits below the zero line at -0.04 at press time, forming a bearish divergence.
: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily crypto Newsletter here.
Typically, the CMF tracks the Flow of capital into an asset, so when it declines while prices rise, it suggests that the rally lacks solid support from sustained demand.
When the CMF falls while prices climb, it suggests that buying is driven more by short-term HYPE than by sustained investor conviction. If this continues, IP’s recent gains could be at risk.
Further, the coin’s negative funding rate lends credence to this bearish outlook. According to Coinglass data, IP’s funding rate sits below one at -0.116% as of this writing.
The funding rate is used in perpetual futures contracts to keep the contract price aligned with the spot price. When the rate turns negative, short traders (those betting on price declines) dominate and are paid by long traders to maintain their positions.
IP’s low funding rate highlights strong bearish sentiment in the derivatives market. Despite its rally over the past day, futures traders are positioned for a decline. This shows a lack of confidence in its mid-to-long-term prospects.
Weak Demand Threatens Near-Term Dip
With no demand backing IP’s rally, it is at risk of a significant pullback once the general market’s momentum weakens. In this scenario, the coin’s price could plunge to $5.43.
On the other hand, if buy-side pressure surges, IP could rally to $6.54.
