IP Price Surge: Is a Reversal Imminent?
IP Price Rallies, But is a Reversal on the Horizon?
Story [IP] experienced a significant price increase of over 10% in the last 24 hours, fueled by a dramatic 286.56% surge in volume, reaching $50.3 million. This rally is attributed to a substantial influx of liquidity from on-chain investors.
However, a counter-trend is emerging. A group of spot and derivatives traders are actively pushing a sell-off, creating uncertainty about the sustainability of this upward movement.
Liquidity Surge Among On-Chain Investors
The Total Value Locked (TVL) across IP's protocols hit a new high of $25.33 million, marking a substantial rebound from its low of $10.66 million in May and June. This increase in TVL, as confirmed by DeFiLlama, indicates growing long-term investor confidence.
Derivative Market Shows Conflicting Signals
Data from Coinalyze initially showed a strong bullish bias in the derivatives market. The Long-to-Short Ratio favored buyers (54.31% long vs 45.69% short), resulting in $189,000 in liquidations for short traders compared to just $29,300 for long traders.
However, this trend is showing signs of reversal. Recent data indicates a shift towards seller dominance, with short volume increasing and the long-to-short ratio narrowing.
Sellers Push Back
The Aggregated Funding Rate has turned sharply negative (-0.2107), signaling a shift in market momentum towards short sellers. This, combined with increased netflow to exchanges ($1.98 million according to CoinGlass), suggests growing sell pressure.
The confluence of these factors raises serious questions about the longevity of IP's recent price rally. Further analysis is needed to assess the potential for a sustained upward trajectory or a significant price correction.
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