The crypto market fell more than 3.5% after Israel’s strike on Iran sparked fresh fears.
At press time, Story[IP] was down over 12%. Daily trading volume also dropped 16% to $43 million, signaling weaker activity for the altcoin amid its two‐month price slump.
IP price action had lost more than 90% of its valuation from its highest cap. Will the altcoin’s price weakness continue?
Analyzing Story’s trend channel in February
Story has been trading within a descending trend channel throughout February. However, since the middle of this month, the altcoin has been trading above the midpoint of the channel.
The altcoin initially showed signs of strength but eventually broke down below support. IP now appears headed toward $0.80, the lower boundary of its channel.
At the time of writing, the MACD signaled growing seller momentum, with its lines trading below neutral. Meanwhile, the RSI registered an oversold reading of 17.29, underscoring the intensity of bearish pressure
With the RSI oversold, bulls could return as the reading signaled potential bear exhaustion. However, the current fear in the markets could see IP prices continue to drop.
But from a technical perspective, the ideal reversal point was around the lower supports of the channel. Hence, IP price was more likely to reverse upon tapping the $0.80 zone if accompanied by buying activity.
In addition to the volume decline and tension from the Israel-Iran war, the altcoin was also experiencing a decline in chain activity.
Network activity extends IP’s overall weakness
The protocol has been losing the number of active accounts since February began.
According to Storyscann, the number of accounts fell from 1,033 to 208 during this period. Projections indicate that this downward trend is continuing.
Additionally, the sum of IP tokens spent on gas fees followed the same trend. The statistics indicated the sum was about 43 IP tokens on January 30th and 1.73 IP as this month came to an end.
Meanwhile, the number of cumulative transactions was rising, reaching 95.10 million at press time.
According to the price action, these transactions could be potential sales activities. Moreover, new transactions were up, suggesting new participants could be shorting the altcoin.
Therefore, the current outlook on the charts and on-chain puts IP on a path likely to hit $0.80. The reaction around this level would shape IP’s next move.
Final Summary
- IP falls 12% amid tensions from the Israel-Iran war and weak network activity.
- IP price trades toward $0.80, where its reaction would determine its next move.
