Story: After retail, will whales push IP to rally beyond 16%?

Key Takeaways

What drove IP’s 16% surge?

Retail investors fueled a spike in spot and derivatives trading, pushing IP prices higher with strong buyer momentum.

Can the rally continue?

Sustaining the rally will require whales and institutions to join in, or the retail-driven move risks a sharp correction.

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Story [IP] saw an impressive 16% surge in the past 24 hours, according to recent CoinMarketCap reports.

However, the sustainability of the altcoin’s price momentum remain disputable, given that the momentum is retail driven.

The surge comes as trading activity spike across both spot and derivatives markets, particularly from retail investors.

Technicals indicate a bullish shift

IP is on a recovery phase after dipping significantly since breaking below the ascending trendline that had been in hold since late August.

The recovery phase has just commenced, with the latest 16% daily gain shaking the on-chain metrics at press time.

Similarly, the Stochastic RSI was at an oversold zone, further affirming the credibility of the price reversal.

The big question now is if the on-chain developments could push the momentum further, given that the drive is majorly from retail traders.

IP on-chain metrics remain optimistic

CryptoQuant’s Spot Retail Activity data highlighted a growing influx of many retail orders at press time price levels, suggesting rising enthusiasm among smaller traders.

This trend was further confirmed by the Spot Volume Bubble Map data, which indicated heating conditions as trading volumes accelerated.

The overheating conditions suggest that the magnitude of the current bullish pressure is yet to reach its optimal value. Whales could chip in, as retail traders have just initiated the market direction.

The move could then push IP prices further to test higher resistance zones, with the trendline-support-turned-resistance a key target zone.

Bulls seems to be winning

Adding to the bullish outlook, CoinGlass’ Long/Short Ratio indicated that buyers dominated at press time. The ratio was 1.03, reflecting a slight tilt toward long positions, with bulls commanding a 53% of positions.

This buyer-driven positioning hinted at continued confidence in IP’s short-term bullish projection and could pull more institutional investors and whales in the market.

Still, the rally sparks some cautionary signals. While retail-driven moves can generate strong momentum, they are often prone to sudden corrections if sentiment shifts.

Sustaining the rally may require broader participation from larger players, such as whales or institutions, to solidify support at higher levels.

But as it stands, IP’s market structure leans bullish and if the surge in retail activity persists, the token could continue testing higher resistance zones in the near future.