Story Protocol (IP) Plunges 50% From ATH Peak - Is This Freefall Just Beginning?
Story Protocol's IP token tanks spectacularly after hitting all-time highs, leaving investors wondering if the bleeding will stop.
Technical Breakdown
The protocol's native token collapses 50% from its peak valuation, wiping out half its market cap in a brutal correction that caught many traders off guard. Market charts show a classic parabolic blow-off top pattern followed by aggressive profit-taking.
Market Psychology at Play
Early investors who bought at lower levels cash out en masse, creating a cascade of selling pressure that overwhelms incoming buy orders. The fear-greed pendulum swings violently toward panic as stop losses trigger across major exchanges.
Regulatory Shadows
While Story Protocol's intellectual property framework shows promise, the broader crypto market faces increased scrutiny from financial watchdogs - because nothing says 'stable investment' like unregulated digital assets trading on meme-driven sentiment.
What's Next for IP?
Traders now watch key support levels like hawks. Will this prove to be a healthy correction before the next leg up, or the beginning of a prolonged bear trend? The charts don't lie - but they rarely tell the whole story either.
IP price has broken below an ascending broadening wedge on the daily chart — Sep. 26 | Source: crypto.news
Following the bearish breakout, Story’s price has dropped below the 50-day simple moving average as sellers began to dominate price action.
Momentum indicators like the MACD were also flashing bearish signals today, with the MACD line crossing below the signal line, which is another telling sign that sellers are currently the dominant force.
Based on these bearish signs, IP remains vulnerable to downside action in the upcoming sessions unless the border market sentiment improves or a major bullish catalyst emerges.
As of press time, the next key support level for IP lies at $5.4, 29% below the current level. If bulls fail to defend this support, it could lead to a deeper correction towards $2.4, which marks the token’s lowest point in June.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
