Story Protocol Crashes 13% as Death Cross Signals Extended Bearish Run

• Story Protocol (IP) plunges 13% intraday to $3.047, showing extreme bearish momentum with technical indicators flashing warning signals.

• Death cross formation confirmed as 50-day and 20-day EMAs breach, signaling long-term downward pressure since May highs near $5.000.

Story Protocol (IP) is under immense bearish pressure, falling like a knife in its recent trading sessions. As per CMC data, the IP is trading at $3.07, with an intraday drop of 13%, showing extreme bearishness. The technical indicators in 4 hours timeframe time frame are extending an alarm to the buyers, indicating that the present bearish trend can still extend.

The most notable aspect of the technical chart configuration is the resolute breach of the 50-day and 20-day exponential moving averages that have been serving as dynamic support in most of the recent consolidation phase. 

This further confirms the long-term bearish bias that has been developing since the May highs near $5.000. This cross of death, the situation in which short-term moving averages cross below long-term moving averages, is conventionally regarded as a sign of long-term downward pressure.

What’s Next For Story (IP) Price?

The MACD indicator indicates a weakening momentum, where the histogram indicates a negative value, suggesting negative momentum. The signal lines have crossed bearishly and are still diverging, which means that selling pressure is increasing. Such technical failure indicates that the recent rally efforts have not created any sustainable buying interest.

The RSI analysis gives further evidence of the bearish mood. Currently, RSI is at 18.62, which is now in very oversold territory, but this extreme reading does not always imply an imminent reversal. The inability of the RSI to keep above the 50 midpoint on the recent attempts at bounces indicates the weakness of the bullish momentum.

The threshold indicator indicates that the volume pattern has been steady, with the red bars prevailing in the recent sessions. This selling, along with the technical breakdown, suggests that institutional and retail players are busy de-risking their positions in Story Protocol.

The Story is currently at the critical support levels at the psychological barrier of the $3.000. A fall below this mark may hasten the drop to the next major support area at around $2.500. To make any significant recovery, Story Protocol would have to break the $3.648 mark and show the presence of consistent buying pressure above the 50-day EMA to change the technical story to neutral.

Highlighted Crypto News Today: 

‌Washington State’s First Crypto ATM Ban Goes into Effect in Spokane