Story Protocol Token IP Drops 12.74% in 24 Hours Amid Bearish Trend

Story Protocol's token, IP, experienced a significant decline, losing approximately 12.74% of its value within a 24-hour period, with its price trading just above $3. This sharp drop follows a week of losses, with IP decreasing by 24.2% and a two-week decline of 26.4%. The token's monthly losses in June amounted to 26.4%, continuing a downward trend that began in March with a 12.8% decrease and April with a 15.6% drop. Despite these losses, IP reached its highest peak of 125.5% in February and saw slight gains of 4.36% in May.

The Q2 quarterly returns for IP declined by 35.7% compared to the previous quarter, where it had made a 96.7% increase. Within a short duration of three months, the Story Protocol token has declined by 43.9% since its all-time high of $7.29. Nonetheless, IP was up 26.3% year-to-date, indicating that the boom in February had not been completely eliminated, but it was quickly narrowing.

As the price of the Story Protocol token showed reduced momentum and constant sell pressure, the $3 level faced a likely breakdown. Traders needed to wait longer until the price showed signs of life, as it continued to bleed. The liquidation heatmap underlined a crowd short liquidity just below $3.60, which was a probable force of downward pressure. With the price declining, visible long liquidations were seen at $2.90 and $2.50. These levels were major areas where potential buyers could fight.

The $3.00 level had become a neutral pivot. An overshoot higher would elicit short squeezes up to $3.60, but a move below $2.90 may give way to more rapid liquidations to $2.50. In that respect, the price would be attracted to the highest concentration of liquidity. The breakout of Story Protocol's price was halted at the support at $3.50, a sign of a significant bearish continuation. The continuation of the trend was in a descending triangle, with the trendline as the top.

The breakdown of the zone of support at the price range of $3.50-$3.60 triggered a bearish movement and could cause the price to plunge against the $2.98 support level. Any break under $2.98 could create space that leads to a fall toward a larger flat into the resistance/demand range of $1.91. On the other hand, reclaiming the $3.60 mark would weaken their reliability and trigger a retest of the trendline near the $4.00 level. The MACD indicator was very bearish, with the expanding gap of the signal line beneath the zero mark and the excesses of the histogram in red. This sustained an extension on the opposite direction unless bullish diversity was created.

Even though the tone leaned toward the bearish side, there was a tendency to bring the buyers to the scene as the price approached $2.98. Therefore, a response at the $3 zone would play a critical role in determining whether IP stabilizes or continues falling lower. The formation of more shorts just below the $3.5 level, with more downside potential following long leveraged orders below $3, indicates that the token may face further challenges in the near term. The overall trend suggests that the hype surrounding IP may be fading, as the token struggles to maintain its value amidst increasing sell pressure and bearish indicators.