AI Token explosion: The 25% increase of Story (IP) may just be the prelude.

The cryptocurrency market continues to maintain its upward momentum following the signals marking the start of the altcoin season – as analyzed by Bitcoin Magazine earlier – as altcoins collectively outperform Bitcoin in terms of performance.

Prominent in the growth group are the coins in the artificial intelligence field (AI), with leading names such as Story (IP), Injective (INJ), and several other notable projects.

Among them, Story (IP) recorded an impressive increase of 25% within just 24 hours, accompanied by a trading volume soaring to 181.44 million USD – an increase of about 170%. However, this token is still quite far from its historical peak of $8.96, equivalent to a decrease of nearly 52%. During the session, IP recorded a low of $3.59.

The recent recovery indicates that the upward momentum of IP is still strong. On the technical chart, the price of this token has broken above the downward price channel, surpassing the resistance area that previously "halted" earlier upward moves. This price channel has a top around $7 and a bottom around $2.5.

As of now, IP is trading around $4.38 and is trending towards the support zone around $3.80 – where it is likely to witness a decisive movement: either a strong rebound or a breakthrough to continue the downtrend.

The bull leads the trend

Daily IP/USDT Chart | Source: TradingViewThe Money Flow Index (MFI) is currently at 77.46, reflecting strong buying pressure and simultaneously warning that the market is approaching the overbought zone.

However, the fact that the IP cannot break through the resistance level of $5 after returning to test this level may open up the risk of a correction towards the important support area around the $3.60 mark.

However, the demand has not weakened yet, clearly shown through the On-Balance Volume indicator (OBV) continuing its upward trend – indicating that the capital is still flowing into the asset.

If the IP can reclaim the $5 mark and turn this area into solid support, the bullish scenario will be further reinforced and could continue to expand.

Leverage creates pressure at the $5 region

According to data from the (Liquidation Heatmap) of CoinGlass, clusters of liquidation orders are dense in the price range from $4.5 to $5.08 — especially there is a prominent hotspot with a total value of $516,000.

Source: CoinGlassNotably, this area coincides with the resistance level that IP just couldn't surpass, indicating that not only technical analysts are closely monitoring this price region, but it is also a place where a large amount of leverage is being accumulated.

If the price can return and hold strong in this area, a liquidation of short positions could trigger a "buy pressure" (short squeeze), pushing the price up significantly. Conversely, if the IP loses the support level of $4.3, the upward momentum will be at risk of being broken.

How is the on-chain activity of Story (IP)?

When analyzing on-chain data on Story Scan in depth, many key indicators clearly show a rising trend.

The total number of completed transactions of the IP has now reached 34,907 million transactions — in just the past 24 hours, there have been up to 253,807 transactions recorded, indicating that the level of interaction is heating up day by day.

Regarding the number of accounts, the ecosystem has surpassed 772,858 accounts, although the number of actively used accounts remains below 10,000. Meanwhile, the total number of wallet addresses currently stands at 3.83 million. Nevertheless, the number of new transactions since July 29 has not seen a breakthrough, with a total IP transfer volume recorded at 1.789 million as of the time of writing.

The bright spot lies in the increasing activity from existing accounts — particularly evident since the beginning of July — indicating that the platform is attracting growing interest from the community.

Source: Story ScanThe deployment of smart contracts has also contributed to this upward trend. In the past two weeks, an additional 2,742 new contracts have been deployed, bringing the total to 321,935 contracts.

Such strong growth waves in on-chain activity are often a sign of a project's ability to retain users. And in the case of IP, this further reinforces the belief that this is not just a short-term "pump", but could be the beginning of a more sustainable trend.

SN_Nour