Story (IP) has surged by nearly 25% in the past 24 hours, making it the market’s top-performing asset. This double-digit rally has propelled IP to the upper trendline of the descending parallel channel.
The trendline has kept the altcoin’s price in a downtrend since it reached an all-time high of $9 on February 21. A successful breach of this level could mean further gains.
IP Eyes Bullish Breakout
IP’s value has declined since climbing to an all-time high of $9 four days ago. Currently exchanging hands at $5.01, the altcoin’s price has since dipped by 45%, trading within a descending parallel channel.
This pattern is formed when an asset’s price moves between two downward-sloping parallel trendlines. It indicates a sustained bearish trend with lower highs and lower lows. When an asset trades within this channel, it suggests continued selling pressure as demand falls.
However, with the demand for IP beginning to climb, it is poised to break above this channel’s upper trendline. This indicates that buying pressure has begun to outpace selling resistance among IP holders, and the altcoin is gearing for a sustained rally.
The setup of its Moving Average Convergence Divergence (MACD) confirms the likelihood of this bullish breakout. At press time, IP’s MACD line (blue) rests above its signal line (orange).
When this momentum indicator is set up in this manner, it indicates significant bullish pressure in the market, suggesting that the asset’s price may continue to rise.
Notably, IP bulls have regained market dominance, as reflected by its Elder-Ray Index. This indicator, which measures an asset’s bull/bear power, is at 0.40 at press time.
IP Elder-Ray Index. Source: TradingView
When its value is positive like this, the bulls are in control, as the asset’s price is trading above its exponential moving average (EMA), signaling strong buying pressure.
IP Bulls Target $9 ATH, but Can They Hold Off a Reversal?
A successful breach of this upper trend line would confirm the strength of IP’s current rally. In this case, its price could break above the resistance at $6 and rally toward its all-time high of $9.
Conversely, if selling activity resumes, IP risks shedding its recent gains. In that scenario, it may dip to $4.36.
Should the bulls fail to defend this support level, IP’s price could plummet further toward the lower line of its descending parallel channel.
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Disclaimer
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