Story (IP) appears with worrying divergence

Story (IP) has lost 27% of its value since June 11. However, in the past three days, this token has slightly rebounded with a recovery of 12.89%, somewhat alleviating the recent decline. Nevertheless, at the time of writing, the market structure still strongly leans toward 下行.

The fluctuations surrounding Bitcoin are also having a strong impact on the rest of the market.

With the current downtrend outlook of IP, traders should pay attention to selling opportunities. This article will highlight the important resistance areas that IP needs to break through and convert into support before it can establish an upward trend again.

Bears will lead the next steps of the Story market

IP price chart | Source: TradingViewIn May, the IP bulls attempted to establish an uptrend. They converted the market structure in a positive direction and pushed the price above the moving averages. However, this effort was reversed at the end of the month.

The losses over the past two weeks have caused IP to fall to a new low. A series of Fibonacci retracement levels have been drawn based on this downward trend. The levels of $3.41, $3.61, and $3.89 now serve as key retracement thresholds and are expected to become resistance areas.

The OBV indicator increased over the past week, indicating that buying pressure is improving, but the Awesome Oscillator still continues to signal that the bears are in control. These conflicting signals may be resolved through price action, especially as the market structure on the daily timeframe still leans towards a downtrend.

A retest of the supply zone from $3.5 to $3.6 is likely to present a selling opportunity.

Source: CoinglassAccording to data from Coinglass, the liquidation map also agrees with the above conclusion. Data in the 1-month timeframe shows that the 3.2–3.3 dollar area and the 2.4 dollar region are the most notable liquidity "attraction points".

Prices are often attracted to areas with high liquidity. Accumulated liquidation orders above the local peak are likely to be swept before a new decline occurs. This could even push the recovery up to the $3.41 area – the 50% retracement level.

Traders should be flexible when seeking selling opportunities. Next week is expected to have many fluctuations - this can yield profits if exploited correctly.

Dinh Dinh