IP Surges 10% as TVL Hits $25.33 Million, but Sellers Gain Momentum

Story [IP] has experienced a significant surge in value, gaining over 10% within the past 24 hours. This rally has been driven by a substantial increase in liquidity inflow from on-chain investors, which has led to a notable spike in market momentum. The Total Value Locked (TVL) for IP has reached a new peak, indicating strong investor interest and expectations for a continued rally. However, this bullish sentiment is not universally shared, as a coalition of spot and derivative traders has begun to force a sell-off, opposing the uptrend.

The recent rally in IP's value has been supported by a significant increase in its Total Value Locked (TVL), which reached a new high of $25.33 million. This marks a rebound from a low of $10.66 million recorded between May 22 and June 14. The sustained surge in TVL suggests growing long-term investor interest and expectations for a continued rally. While some derivative traders anticipate a pullback, others appear increasingly bullish.

In the derivatives market, the Long-to-Short Ratio has shifted toward buyers in the past 24 hours. At press time, 54.31% of volume came from long positions, while short positions accounted for 45.69%, reflecting a ratio of 1.19. This buying surge coincided with a major liquidation event that ran counter to the IP rally. Within the period, traders who bet against IP lost $189,000, while those who went long lost only $29,300. This means that for every $1 lost by long positions, $6.49 was lost by shorts—a significant imbalance that tilted momentum toward the bulls.

However, this dynamic appears to be shifting. A close look at lower timeframes shows that sellers are starting to close the gap. In the last hour, for instance, the long volume dropped to 51.86%, while short volume rose to 48.14%—hinting at a gradual resurgence of seller dominance. Sellers are becoming more active, not only in derivatives but also in spot markets. On the derivatives side, the Aggregated Funding Rate has turned sharply negative, hitting -0.2107, its lowest level since June 22. A significantly negative rate means short traders are paying fees, a sign that market momentum is shifting in their favor.

Adding to this bearish pressure is the Spot Exchange Netflow, which recorded more inflows than outflows, suggesting more IP tokens are being moved to exchanges for potential selling. Notably, netflow reached $1.98 million, the highest profit-taking point yet. Over the past two days, total sell-offs have hit $3.42 million. This ongoing sell pressure suggests IP’s chances of sustaining its rally are narrowing. The question remains: will the bears absorb the losses, or will investors back down?