Layer-1 (L1) coin IP has extended its winning streak for yet another day. Its price has climbed by 30% in the past 24 hours, and the altcoin has emerged as the market’s top-performing asset during that period.
With market sentiment turning increasingly bullish on the asset, IP is set on reclaiming its all-time high.
IP Breaks Out of Downtrend, Defies Market Slump
IP’s price has rocketed 30% over the past 24 hours, bucking the general market downtrend. The altcoin has now broken out of the descending parallel channel that kept its price in a downtrend between February 21 and 25.
When an asset breaks above this channel, it signals a trend reversal from bearish to bullish. It indicates that IP’s selling pressure is weakening, and buyers are gaining control. This breakout can be seen as a bullish confirmation, suggesting further upward momentum if supported by strong trading volume.
This has been the case for IP over the past 24 hours. Its trading volume has rocketed 197% during that period. It currently sits at an all-time high of $1.73 billion, reflecting the high demand for the altcoin.
When an asset’s trading volume soars during a price rally, it indicates strong market participation and confirms the legitimacy of the upward move. It suggests increased buying interest among IP traders, strengthening confidence in the breakout and reducing the likelihood of it being a false move. This, in turn, signals the potential for sustained gains.
IP Flips $6 Resistance into Support
On an hourly chart, IP has flipped the resistance at $6 into a support floor. If this level holds and demand for the altcoin continues to grow, it could rally toward its all-time high of $9.
However, a break below this support floor could cause IP to return within the descending parallel channel, in which case it could trade at $4.36.
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