IP's Price Surge: A Closer Look

IP Price Surge: A Closer Look

Layer-1 (L1) cryptocurrency IP defied the broader crypto market downturn, experiencing a 4% price increase in the last 24 hours. However, a deeper analysis reveals potential warning signs.

On-Chain Data Reveals Cautious Signals

Despite the price jump, on-chain activity remains subdued. This suggests the rally may lack strong fundamental support. For instance, daily trading volume dropped 38% during this period. A rising price with decreasing volume typically indicates weak buying pressure and limited market interest. This raises concerns about the rally's sustainability.

IP Price Analysis. Source: Santiment

Traders Bet Against IP

The negative funding rate of -0.14% further highlights market skepticism. This signifies that many futures traders are holding short positions, betting on a price decline. Short sellers are essentially paying long holders, indicating a bearish sentiment dominating the market.

IP Funding Rate. Source: Coinglass

Potential Price Scenarios for IP

Currently trading at $2.75, IP sits above a key support level of $1.59. A drop below this could lead to a fall under $1. However, renewed buying pressure could drive a rebound towards $3.17, and potentially higher to $4.41 if this resistance is broken.

IP Price Analysis. Source: TradingView

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Market conditions are volatile. Conduct thorough research and consult a professional before making any investment decisions.

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