Story Protocol’s IP token faces significant bearish pressure, shedding 18% of its value in 24 hours as investors exit positions. On-chain data reflects a downtrend pattern with sustained capital outflows and rising short exposure outweighing long positions. The token now trades near its all-time low of $1, and its next move hinges on whether critical support levels can hold against the current selling pressure.
The intellectual property token Story Protocol [IP] faces a pivotal moment as investor action will likely determine if its price stabilizes or declines further. On-chain data and market indicators show broad bearish sentiment reinforced by a longer-term price structure of lower highs and lower lows.
Activity in both spot and perpetual markets mirrors this outlook. The market’s only realistic chance for a rebound now depends on a critical support zone dictating near-term direction.
Perpetual market positioning is dominated by sustained liquidity outflows and a steady rise in short exposure. Price action followed this trend, with IP posting one of its sharpest declines recently, shedding roughly 18% of its value.
During this period, approximately $17 million exited the IP perpetual market. These outflows typically reflect entrenched bearish conviction and investor capitulation as traders exit amid accelerating downside pressure.
This dynamic culminated in a liquidation cascade that pushed total liquidations on Story Protocol to about $1.19 million. A negative Funding Rate underscores this imbalance, indicating that short traders are paying a premium, signaling expectations of continued downside momentum.
The spot market offers little relief, with buying activity falling to its weakest level over nine days. With limited spot inflows and bearish derivatives dominance, downside risks remain elevated.
IP traded at a technically fragile level, hovering close to its all-time low of $1, first set in February 2025. Price was confined within a broader support range between $1.7 and $1.0, a historical reversion area.
A failure to hold the mid-range support near $1.4 would likely confirm a broader bearish continuation. Instead, weak spot participation suggests the probability of a sustained rally remains limited.
Liquidity analysis provided further insight into potential price paths. Traders concentrate liquidity between the mid-range support and the upper boundary near $1.7, suggesting a rebound remains technically possible.
However, if buying momentum fails near the upper liquidity zone, downside risks increase. Traders have also stacked liquidity below the mid-range support, creating room for a deeper pullback if sellers regain control.
