IP Price: Bitcoin's Influence & $7 Resistance
The cryptocurrency IP experienced a significant price rally, increasing 19.5% in 24 hours, accompanied by a 143% jump in trading volume. This surge suggests strong short-term bullish sentiment. However, the $7 resistance level, previously tested and rejected in late February, presents a significant hurdle.
IP Price Analysis: Bullish Swing, but $7 Resistance Remains
Technical analysis reveals a bullish swing structure on the 4-hour chart. Fibonacci retracement levels, following last week's rally, indicate support around the 61.8% retracement level at $5.13. Despite the volume increase, the current bars are smaller than those seen during the late-February rally, a potential warning sign. A sustained breakout above $7.2 remains uncertain.
Will IP Consolidate Below $7.2?
The relatively low volume compared to previous rallies, coupled with a lack of higher highs and lows in the On-Balance Volume (OBV), suggests a potential range formation below the $7.2 level. A liquidity cluster between $6.6 and $6.9 might provide temporary upward pressure. The $5 level is highlighted as a significant support zone across various timeframes.
Source: IP/USDT on TradingView
Source: Coinglass
Bitcoin's Impact on IP's Trajectory
Bitcoin's price movements will likely significantly influence IP's direction. Bitcoin currently shows a bearish daily chart structure, and recent news concerning US strategic crypto reserves has pushed Bitcoin prices into a resistance zone. A Bitcoin retracement could negatively impact IP, while a move beyond $100,000 could conversely fuel further gains for IP.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Conduct thorough research before making any investment decisions.
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