IP Faces Uncertain Future as Bitcoin's $110k Target Looms

Story [IP] has been on a downtrend since May, and while its recent rally indicated some bullish momentum, technical analysis suggests a cautious approach. The short-term outlook is bullish, with a potential minor dip to $2.85. However, for the altcoin market to gain, Bitcoin [BTC] would need to climb towards $110k and consolidate. If this does not happen, or if IP falls below $2.8, traders might adopt a bearish outlook.

The 12-hour chart shows a bullish market structure break, with IP making a new local high. Although the trading volume during this shift was high, it has tapered off in recent days. The On-Balance Volume (OBV) has not yet reclaimed its earlier levels, suggesting weak buying pressure. The bullish internal structure appears overpowered by the bearish swing structure, with Fibonacci retracement levels plotted based on the swing move from $4.26 to $2.44 earlier this month.

The upward momentum of the past week is not yet firm, as the Relative Strength Index (RSI) has not crossed the neutral 50 threshold. Combined with weak demand, IP may struggle to climb past the $3.34 resistance level. Further resistances are at $3.64 and $3.86, where a bearish reversal could occur.

The 2-week liquidation heatmap reveals strong magnetic zones at $2.5 and $3.44, almost equidistant from the current market price of $2.94. The liquidity cluster to the south at $2.42-$2.5 is slightly denser. Given the bullish structure on the 12-hour chart, IP might push higher, but the lack of high demand could stall its progress and lead to a minor dip. Traders can consider going long at the $2.85 zone, with a tight stop-loss at $2.78, especially if Bitcoin faces volatility.