AI token [IP] breaks into top 10, facing potential 15% drop

The newly introduced digital currency AI initiative, Story IP, is causing a stir in the field of digital assets with its remarkable upward momentum.

With a significant 32% upsurge, traders and investors are showing strong confidence in the cryptocurrency and building up their holdings, as indicated by data from the blockchain analysis company Coinglass.

IP’s Latest Price Movement

Not only has it managed to secure a position within the top ten digital currency AI tokens by surpassing Virtuals Protocol (VIRTUAL), IP is currently trading around $3.42 with a notable 97% surge in trading volume.

Since its launch, there has been a consistent flow of IP tokens exiting exchanges, suggesting that investors and long-term holders are accumulating the asset.

Recent data on token movement reveals that exchanges have witnessed an outflow of IP tokens totaling $2.15 million within the last 24 hours.

This considerable token outflow from exchanges could prompt buying activity and propel further positive momentum, potentially explaining the substantial rally today.

Following this accumulation and price upturn, day traders have entered the market in large numbers, resulting in a 70% rise in IP’s Open Interest (OI).

The increase in OI indicates a rise in traders taking positions on both the long and short sides of the market.

Key Liquidation Points

Data from Coinglass suggests that traders with long positions are currently dominating the market and are heavily leveraged at the $3.134 threshold, holding long positions worth $3.28 million.

Meanwhile, short sellers seem to have exhausted their positions, being over-leveraged at the $3.276 mark with short positions valued at $1.54 million.

These on-chain indicators point towards strong support from the bulls, potentially aiding in sustaining the positive momentum of the asset.

IP’s Technical Evaluation and Vital Levels

As per CryptoCrypto’s technical assessment, IP demonstrates a bullish stance, with the Average Directional Index (ADX) currently at 59, indicating robust momentum.

The increasing ADX line hints at accelerating momentum for IP.

Despite the bullish trend in ADX, the four-hour chart suggests a potential short-term price correction for the asset.

Based on recent trends, IP might witness a 15% decline in price, possibly reaching the $2.61 level in the upcoming days.