IP, the native token of Story, might be poised for an upside rally

IP, the native token of Story, might be poised for an upside rally as it approaches a bullish breakout.

The native token of Story (CRYPTO: IP) might be approaching an upside rally on the charts as traders appeared to be bullish on the asset. In fact, IP has gained significant attention from traders and investors lately, registering a price surge of over 25%. Soon, it could be repeating this momentum.

According to on-chain analytics firm Coinglass, traders were betting more on the bullish side. At press time, traders seemed to be heavily over-leveraged at $3.70 on the lower side (support) and $4.28 on the upper side (resistance), according to the IP exchange liquidation map.

It further revealed that at these levels, traders had built $2.64 million worth of long positions, hoping the price would not fall below the $3.70-mark. They also built up $1.05 million worth of short positions, anticipating that the price would not rise above the $4.28-level.

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To put it simply, this metric suggested that traders with a bullish view were dominating the asset. On the contrary, traders with a bearish view may be getting exhausted.

Traders strongly believe in a bullish outlook

Here, it’s worth noting that IP’s OI-weighted funding rate had a press time value of +0.0006%.

The OI-weighted funding rate is an on-chain metric that reflects traders’ bullish or bearish sentiments based on Open Interest in Futures contracts. The aforementioned reading indicated that traders have been heavily bullish.

Additionally, over the last 24 hours, IP’s Open Interest (OI) has surged by 6%, further supporting and strengthening the positive funding rate.

At press time, IP was trading near $4.16, having recorded a price hike of over 6.5% in the last 24 hours. Over the same period, its trading volume jumped by 70% - A sign of heightened participation from traders and investors, compared to previous days.

Story (IP) price action and technical analysis

According to AMBCrypto’s technical analysis, I appeared to be bullish and its may be approaching a notable price surge. On the daily timeframe, the asset formed a bullish inverted head-and-shoulders price action pattern, with the crypto possibily on the verge of a breakout.

Based on the altcoin’s recent price action and apparent patterns, if IP’s upside momentum continues and the price breaches the neckline of the pattern, the asset could soar by 25% and hit the $5.30-level in the near future.

Worth noting, however, that despite the recent rally, IP’s price was still trading below the 200 Exponential Moving Average (EMA) at press time. This indicated that the asset has been on a downtrend.

When combining the altcoin’s price action with on-chain metrics, it would seem that IP could soon break key levels. IP might be poised to record an impressive rally in the coming days.