- Story price faced a strong bearish pressure on the daily technical chart.
- IP price down by 19% in the last 24 hours, suggesting bear dominance.
Story (IP) has seen a sharp 19% drop over the past 24 hours as per CoinMarketCap data, with the token trading at about $5.650. This steep selloff is a major retreat from the recent highs around $7.996, which puts the altcoin in a critical technical crossroad that is worth taking a closer look at.
As can be noticed in the daily technical chart, even though the loss is significant, Story IP is still above both of the key exponential moving averages. The Story price is still trading above the 50-day EMA at $5.085 and the 100-day EMA at $4.662, indicating the overall bullish trend formation is still in place. More promisingly, there has been a golden cross between these two moving averages with the 50-day EMA now crossing above the 100-day EMA, which is usually a bullish long-term indicator.
But momentum indicators give a more detailed image. The RSI has dropped to 50.08, which is a neutral momentum zone since it had been in the overbought zone above 72 earlier. This cooling off implies that the recent buying pressure has been exhausted, and this may precondition either consolidation or additional downside movement. The MACD indicator has also created a bearish crossover, where the signal line has crossed under the MACD line, which has also confirmed the recent change of momentum to bearish.
What Next For Story (IP) Price?
Bollinger Bands analysis shows that the price has reached the lower band support, which means that the token could be oversold in the short term. This technical development is usually followed by a bounce or a consolidation period as the market absorbs the recent volatility.
In a more macro view, the price action of Story (IP) is indicative of the volatility that is common in emerging blockchain protocols. The token was in a robust uptrend since July lows of about $2.50, which means that it has gained more than 200% before the recent correction. The fact that the support was maintained above the key moving averages and the golden cross was formed may indicate that this pullback may be a healthy correction in the bigger uptrend.
The traders need to keep an eye on the ability of the price to maintain above the 50-day EMA support of $5.085. A clean break below this mark may seek out the 100-day EMA at $4.662, whereas a rebound off of current prices may indicate the continuation of the larger bullish trend to former resistance points.
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