IP Surges 11.83% Reclaiming $3.12 Support Level

IP, a prominent cryptocurrency, has recently experienced a significant price surge of 11.83%, reclaiming a crucial support level at $3.12. This upward momentum is supported by increasing trading volume and the Relative Strength Index (RSI) exiting the oversold territory. The current market structure suggests that the bottom may be in, with the price action breaking above $3.12, a region aligned with the point of control and prior high timeframe resistance. As long as the price holds this level, the door remains open for a continued rally toward $4.17, and possibly higher.

The recent rally in IP can be attributed to several key factors. Firstly, the increasing volume and the RSI exiting the oversold zone indicate strong buying pressure and a potential reversal of the previous downward trend. Secondly, the price has broken above key resistance levels, which often acts as a catalyst for further gains. The technical analysis suggests that the price is likely to continue rising as bulls target the next resistance level at $4.17. However, a drop below the support level at $3.12 would invalidate the bullish outlook and could lead to a correction.

From a technical perspective, the swing low was formed at the value area low of the recent corrective move. This area aligned closely with high timeframe support at $2.61, which held across multiple daily candle closes, suggesting accumulation at the base. The follow-through came with an impulsive breakout candle, pushing price above $3.12 and confirming a short-term shift in trend. The $3.12 region is significant as it aligns with the point of control and has transitioned from resistance into potential support. If the price continues to close above this level on high volume, it would confirm strength in the move and raise the probability of a breakout continuation.

The RSI has also been deeply oversold throughout the downtrend and is now showing signs of recovery. Combined with the surge in volume at support, in stark contrast to the low-volume grind during the downtrend, this signals that demand has returned. The next resistance sits at $4.17, a natural target for the current leg. A move to this level would represent a further 32% gain from current prices. If bullish momentum remains, $4.90 becomes the next macro target, with the potential for a full trend rotation.

If IP continues to close above $3.12 with strong volume, a rally toward $4.17 looks increasingly likely. Watch for consolidation or impulsive continuation in this zone, both will reveal the next major move. The bullish sentiment surrounding IP is driven by several factors, including positive market sentiment and technical indicators that suggest further upward movement. The surge in IP's price is part of a broader trend in the cryptocurrency market, where several other digital assets have also seen significant gains.

Ask Aime: What's behind IP's 11.83% price surge?