Analyzing the 19% Surge of Story Protocol – Is $4 Within Reach?

The launch of its on-chain prediction market increased demand and trading activity for Story Protocol.
The price must surpass the EMA20 level at $3.12 to target the EMA50 near $4.4.
Story Protocol (IP) has rebounded strongly after defending its $2.0 support, reaching as high as $3.2 before a slight pullback.
As of now, IP is trading at $2.8, showing a daily increase of 19.32%. Meanwhile, trading volume surged 197% to $181 million, indicating heightened on-chain activity.

Key Takeaways

The launch of its on-chain prediction market increased demand and trading activity for Story Protocol.
The price must surpass the EMA20 level at $3.12 to target the EMA50 near $4.4.
Story Protocol (IP) has rebounded strongly after defending its $2.0 support, reaching as high as $3.2 before a slight pullback.
As of now, IP is trading at $2.8, showing a daily increase of 19.32%. Meanwhile, trading volume surged 197% to $181 million, indicating heightened on-chain activity.

Story Protocol Surges 19%, After the Launch of On-chain Prediction Markets

Why Is Story Protocol Gaining Traction?

The Launch of On-Chain Prediction Markets

In 2025, prediction markets have gained immense popularity, with trading volumes surpassing $3 billion, as reported by Forbes. In line with this growing interest, Story Protocol has introduced a blockchain-based prediction market through a partnership with MusicbyVirtuals, allowing users to wager on various financial and cultural events. These markets will facilitate bets on topics ranging from K-pop chart rankings to cryptocurrency prices. The Story Blockchain will handle the settlements for different bets, marking a pivotal moment in which trends and financial forecasts can be tokenized and traded on-chain. More importantly, this move signifies Story Protocol’s ambition to expand beyond intellectual property and engage with real-world applications.

Increased Demand Follows

Following the debut of the prediction market, there was a notable surge in demand for the Story Protocol altcoin. Data from Coinalyze indicates that buyers regained control, with 2.1 million in Buy Volume outpacing 1.7 million in Sell Volume within a 24-hour period. Story protocol buy sell Source: Coinalyze This resulted in a positive Buy-Sell Delta of 400k, indicating a strong accumulation trend among buyers. Additionally, exchange activities corroborated this trend, showing $18.86 million in outflows versus $18.22 million in inflows, as per CoinGlass. Story spot netflow Source: CoinGlass Consequently, the Spot Netflow for the altcoin decreased by 177.84% to -$631.86k, reflecting an increase in outflows. Typically, such rising exchange outflows decrease the supply available for immediate selling, exerting upward pressure on the asset’s price.

Can the Rise Take IP to $4?

The demand for Story Protocol surged following the introduction of its on-chain prediction market, which caused a notable rally. At present, the DMI Stochastic Momentum Index has turned positive, indicating a potential bullish shift as buyers have recently entered the market looking for a short-term rebound in IP's price. IP DMI SMI Source: TradingView However, overall indicators remain negative, suggesting that the bearish trend persists. The altcoin is positioned below all major moving averages. For sustained upward movement, IP must first climb above the EMA20 at $3.12, which could set the stage for a potential rise towards the EMA50 near $4.4. If buyers fail to reclaim these crucial levels, the momentum of the rally could diminish, and prices might pull back to the $2.4 support zone.