Story (IP) is experiencing difficult moments, with investors suffering heavy financial losses due to the recent price plunge. According to the data tracked today by the market analyst Satoshi Club, IP’s recent price crash saw its price falling 51% from its ATH. The asset’s value currently stands at $8.31, down 17.1% over the past 24 hours, making it one of its most dramatic single-day plunges in recent months. The massive drop comes amid the surge of selling activity by prominent traders and whales, raising fears that a further downturn could be coming. Currently, crypto markets display weak sentiments, with most assets in deep red. While Bitcoin fell below $110,000, IP was the worst hit, dropping 51% over the past five days as traders booked profits after the asset hit a new ATH recently.
Key Factors Behind IP’s Sell-Off
IP’s massive fall comes after aggressive profit-taking that triggered the asset’s price down from its ATH of $14.99 (reached two weeks ago) to the current $8.31 level. Uptrends recorded in recent weeks triggered heightened selling activity, as technical data showed profit-taking by long-term investors as the catalyst for the decline.
The asset’s significant price fall came after the departure of Story co-founder Jason Zhao, who left his full-time CEO role on the project late last month to focus on AI ventures. Furthermore, the recent business strategic event, the Origin Summit, held on September 23, co-hosted by IP-based blockchain platform Story and many corporations, wasn’t adequate to sustain the crypto price. The summit event brought together global leaders in AI, intellectual property (IP), and crypto sectors to transform intellectual property into a new asset class and unlock the $80 trillion IP economy.
Although the current sentiment appears bearish, the market situation could present an entry opportunity for patient investors. Traditionally, extreme fear among investors presents potential purchase opportunities, as markets normally move contrary to crowd expectations. The current profit-taking activity could therefore signal a downturn-and-rise formation in the making.
What Next For IP?
IP’s plunge to the current $8 level indicates the ongoing weakness in the broader cryptocurrency market and the possibility of a strong downtrend. The token’s value currently trades at $8.31, down 27% and 23% over the week and 14 days ago, respectively, an indicator of intensified selling pressure among traders.
The RSI, which currently stands at 66.72, further confirms the bearishness. Failure to hold strong above the $7.37 support level could further exacerbate the slide and perpetuate the downtrend in the short term.
