IP Extends Rally After Key Breakout Signals Strong Bullish Continuation

• IP sustains bullish trend above EMAs, signaling strong continuation potential ahead.
• Spot and derivatives flows show market reset, reducing liquidation and pullback risk.
• Institutional allocation and supply constraints accelerate demand and price discovery.

Story (IP) extended its recent rally after a decisive breakout reshaped its short-term market structure. The token surged beyond a prolonged consolidation range, attracting fresh interest from both speculative traders and longer-term participants. 

Significantly, the move unfolded alongside improving market sentiment, tighter exchange supply conditions, and renewed institutional visibility. Together, these factors shifted the narrative from recovery to continuation, placing IP among the stronger performers in its segment.

Bullish Structure Holds Above Key Levels

IP continues to trade above all major exponential moving averages on the four-hour chart. Besides signaling trend strength, this alignment often attracts systematic trend followers. 

The upward slope across short and long-term averages suggests continuation rather than exhaustion. Additionally, the Supertrend indicator remains supportive, trailing below price and reinforcing directional bias.

Immediate resistance sits between $2.65 and $2.70, where short-term extension pressure may emerge. Acceptance above this band would likely invite follow-through toward the $2.90 to $3.00 region. That zone carries psychological importance and aligns with projected extensions from the recent breakout.

On the downside, $2.38 to $2.40 now acts as the first line of defense. This level coincides with a deep Fibonacci retracement and prior reaction points. 

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However, the broader bullish structure remains intact as long as price holds above $2.18 to $2.20. A deeper pullback toward $2.03 would test trend resilience but would not immediately invalidate the larger setup.

Derivatives and Spot Flows Show Reset

Derivatives data reflects a completed leverage cycle rather than ongoing excess. Open interest expanded sharply into prior highs, then unwound through forced closures and risk reduction. 

Consequently, current positioning appears cleaner, reducing liquidation risk during pullbacks. Early January data shows only modest re-engagement, suggesting traders remain selective.

Spot flows reinforce this narrative. Earlier accumulation phases transitioned into profit-taking after peak inflows. Since then, inflows and outflows have balanced, indicating hesitation rather than distribution. Hence, the market appears to wait for confirmation before committing fresh capital.

Institutional Attention and Supply Factors

The latest catalyst emerged from institutional allocation shifts. On January 8, Grayscale added Story to its Decentralized AI Fund, assigning an 8.73% weighting. 

Additionally, temporary deposit suspensions on major Korean exchanges constrained short-term supply. Combined, these developments amplified demand during an already bullish technical phase, accelerating price discovery.

Technical Outlook for Story (IP) Price

Story (IP) enters the near-term outlook with a clearly defined bullish structure following its decisive breakout above the $2.20–$2.25 range. Price expansion has been sharp, and key technical levels now frame the next phase of direction as momentum cools slightly after the impulse move.

Upside Levels: $2.65–$2.70 remains the immediate resistance zone. A clean break and sustained hold above this area would confirm continuation strength. Beyond that, the $2.90–$3.00 region stands as the next projected extension zone, combining psychological resistance with measured move targets from the prior range.

Downside Levels: $2.38–$2.40 serves as the first support area and aligns with a key Fibonacci retracement. Below that, $2.18–$2.20 marks the former breakout zone and represents a critical level for maintaining bullish structure. A deeper pullback toward $2.03–$2.05 would test the 0.5 Fibonacci level and a key EMA cluster, signaling potential momentum exhaustion if lost.

Price remains firmly above all major EMAs, with the 200 EMA now well below spot levels. This positioning removes overhead moving-average resistance and shifts focus entirely to horizontal supply near $2.70. The structure resembles a post-breakout expansion phase rather than a topping pattern.

Will Story Go Higher?

Story’s price outlook hinges on whether buyers can continue defending the $2.20 area during any consolidation. As long as price holds above this level, pullbacks favor continuation rather than reversal. Acceptance above $2.70 would likely open the door toward the $3.00 region. 

However, failure to hold $2.18 risks a deeper retracement toward $2.05. For now, IP trades in a constructive zone where momentum, structure, and defined levels suggest volatility expansion remains skewed to the upside.

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