Story (IP) has posted a nearly 25% gain in the past 24 hours, becoming the best-performing asset in the market. The double-digit rally has pushed IP close to the upper trendline of the descending parallel channel.
This trendline has been holding back IP’s recovery since it hit an all-time high (ATH) of $9 on February 21. A successful breakout above this level could see IP continue its upward momentum.
IP Aims for a Bullish Breakout
After peaking at $9 four days ago, IP’s price has dropped to $5.01, representing a 45% drop from its ATH. The altcoin is currently trading within a descending parallel channel.
IP/USDT Hourly Chart | Source: TradingView
This pattern forms when the price fluctuates between two parallel downward trend lines, reflecting a prolonged downtrend with lower highs and lower lows. This shows that selling pressure is still dominant due to weakening demand.
However, as demand for IP starts to increase again, the price is trending above the channel resistance line. This signals that buying pressure is overcoming selling resistance and the altcoin is ready for a strong recovery.
The MACD indicator also confirms this bullish breakout. At the time of writing, the MACD line (blue) of IP has crossed above the signal line (orange).
IP MACD Indicator | Source: TradingView
When the momentum indicator sets up this way, it shows strong buying pressure in the market, suggesting that the asset price could continue to rise.
Notably, the IP bulls have regained control of the market, as shown by the Elder-Ray Index indicator. This indicator measures the strength between buyers and sellers, currently at 0.40.
IP Elder-Ray Index | Source: TradingView
A positive value of the indicator shows that the bulls are in control, as the asset price remains above the exponential moving average (EMA), reflecting strong buying pressure.
IP Aims for ATH at $9
If IP successfully breaks out of the channel resistance line, this will confirm the strength of the current bullish momentum. The price could then surpass the $6 resistance level and move towards the ATH at $9.
IP/USDT Hourly Chart | Source: TradingView
Conversely, if selling pressure returns, IP risks losing recent gains. In that case, the price could drop to $4.36.
If the bulls fail to defend this support level, IP could continue to decline towards the support line of the descending parallel channel.
