Will Story Protocol’s 50% Crash After ATH Lead to More Losses?

Story Protocol’s IP Token Faces Sharp Decline Amid Market Uncertainty

Story protocol’s IP Token Faces Sharp Decline Amid Market Uncertainty

Story Protocol’s IP token has seen a critically important drop, falling 48% over the past five days. This decline comes after the token hit a new all-time high over the weekend. A bearish pattern now suggests further losses may be on the horizon.

IP’s price has fallen over 50% from its peak earlier this month. Profit-taking and a broader market downturn have overshadowed recent project developments. The $5.4 level is crucial for bulls to defend against further losses.

According to crypto.news,IP was trading at $7.59, down 24.5% in the last 24 hours.The token reached its all-time high of $14.78 on September 21. The price surge was fueled by the announcement of the Origin Summit, a major event in Seoul during Korea Blockchain Week.This summit brought together leaders from entertainment, IP, and crypto industries, boosting the project’s visibility.

Other developments, like the launch of the IP Vault and partnerships with high-profile IPs, also supported the rally. Though, these gains were offset by profit-taking and market uncertainty. The broader crypto market downturn, influenced by U.S. tariffs and Fed rate cut concerns,added to the selling pressure.

Technical analysis shows a bearish breakout on the daily chart. IP has fallen below the 50-day simple moving average, with momentum indicators signaling further declines. the next key support level is $5.4. If this level is breached, a deeper correction towards $2.4 is possible.

Traders are now watching the PCE data release for clues on the Fed’s next move. Despite the setbacks, the project’s real-world applications and partnerships remain promising.