Why is the Price of IP Increasing Today? Unveiling Partnerships, Whale Demand, and More

The recent surge in the price of IP can be attributed to a new partnership with Crypto.com and increased demand from major whale investors. However, there are indicators of bearish momentum that could pose challenges ahead.

Key Takeaways

Crypto.com’s partnership and increased Buy Volume have driven demand for IP.
The A/D divergence indicates potential risks to the $3.5 support level, despite strong whale interest that could push prices toward $5.6.

Over the past three months, Story (IP) has been following a long-term downward trend since it peaked at $14. Recently, however, it seemed to have reached a local bottom, suggesting a possible trend reversal. As of now, Story is trading at $4.13, having seen a 10.53% increase today, backed by a remarkable 320% rise in trading volume, indicating fresh investments in the asset.

Story [IP]

Partnership with Crypto.com Stimulates Interest

The collaboration with Crypto.com has given a significant boost to IP's attractiveness. Under this strategic partnership, Crypto.com will offer custody, execution, OTC, and staking services for the treasury reserves of Story.

These reserves include 52.5 million IP tokens, valued at over $230 million, making Story the first firm to use IP as part of its reserve treasury assets. Crypto.com also noted that IP Strategy (Nasdaq: IPST) is managing a regulated equity stake in the $80 trillion programmable intellectual property sector.

This announcement has significantly lifted market confidence, encouraging both retail and whale investors to accumulate positions in IP.

Increasing Whale Interest

As the price of Story cooled in early November, whale interest began to pick up. Data from CryptoQuant reveals that there have been large whale transactions consistently over seven days, indicating sustained interest on both sides of the market.

Story spot average order size

Additionally, the flow of buy-and-sell data showed that whales were favoring the buy side. In just one day, Story recorded $973k in Buy Volume compared to $834k in Sell Volume on Coinbase and Kraken, leading to a positive delta of $139k—indicative of renewed buying appetite. Historically, increased accumulation by whales has often resulted in upward price pressure, setting the stage for potential rallies.

IP buy sell volume

Bearish Signals Underlying the Optimism

According to AMBCrypto, the rally in the price of Story (IP) has been fueled by a combination of optimistic sentiment surrounding the Crypto.com partnership and increased whale participation. However, despite this positive momentum, the A/D (Accumulation/Distribution) indicator has continued to decline, signaling that buyers may lack the conviction necessary for sustained price growth.

Story AD/SAR

Even though prices have risen slightly, the downward trend of the A/D line could indicate hidden selling pressure, potentially foreshadowing a market pullback. If this selling pressure continues, Story may retest the support level at $3.5. Conversely, if whale demand remains robust and the momentum from the partnership continues, the price could target the Parabolic SAR resistance level at $5.6.