Story Protocol Down 50% from ATH as Fundamentals Show Weakness – Is $5 Next?
Story Protocol (IP) value tumbled 50% over the past 24 hours after aggressive profit-taking drove the IP token down from its all-time high of $14.99 to $7.25 at press time.
This decline adopted a latest 120% rally that lifted IP token from $5.58 in mid-August, coinciding with co-founder Jason Zhao’s departure, earlier than reaching its peak of $14.99 4 days in the past.
Many attributed the transient rally to the undertaking’s announcement of the Origin Summit, held on September 23, in Seoul throughout Korea Blockchain Week.
The summit served as a serious occasion connecting AI, mental property, and blockchain, bringing collectively audio system and executives from leisure and IP corporations, together with SM Entertainment, Azuki, and Moonbirds.
Major crypto and funding corporations, together with Grayscale, Polygon, and Animoca Brands, additionally participated to debate IP tokenization by Story’s infrastructure.
Story Protocol Weak Fundamentals See Investors Question Project Sustainability
However, the event-driven surge couldn’t maintain the token in opposition to its weak fundamentals concerning undertaking worth creation and sustainability.
Data from DefiLlama exhibits that Story Protocol, with a market capitalization of $2.27 billion, may solely boast of $29.09 million in whole worth locked (TVL).
Moreso, the protocol generates simply $679 in each day income, far under just lately launched protocols like Aster DEX, which carries the same $3 billion valuation whereas generating approximately $13 million in each day income.
Crypto information scientist Budihil Vyas famous that the IP chart resembles against the law scene and predicts a return to the $5 degree the place the preliminary pump started.
Story Protocol’s whitepaper presents the undertaking as a blockchain initiative geared toward remodeling mental property administration by on-chain options.
Instead of counting on conventional copyright frameworks, the platform empowers creators to register, monitor, and monetize their works by a decentralized community.
This contains books, movies, music, and AI-generated content material.
The protocol has raised approximately $134.3 million in fairness financing throughout a number of rounds.
These embody a May 2023 seed spherical producing $29.3 million, a September 2023 Series A yielding $25 million, and an August 2024 Series B led by Andreessen Horowitz’s a16z crypto division, contributing $80 million.
Despite these investments, the restricted worth captured by the undertaking has broken its status, with many now viewing it as one other unsustainable crypto enterprise.
Technical Analysis: EMA Breakdown Shows Story Protocol’s Path Back to $5 Support
Technically, the Story Protocol chart reveals a dramatic parabolic rally from round $6 in early August to just about $15 in mid-September, representing roughly a 150% achieve.
The value has since dropped roughly 55% to the present degree of $7.237, confirming large promoting after reaching all-time highs.
The technical setup presents a number of warning indicators for bulls. The token broke under the ascending trendline that supported your complete August-September rally, confirming the uptrend violation.
Price is at the moment testing the $7 assist degree, which matches a earlier resistance space from late August.
Volume patterns present heavy promoting stress in the course of the latest decline, with purple quantity bars dominating latest classes.
The token approaches the 50% Fibonacci retracement degree of your complete rally, which generally serves as important assist.
If this degree fails to carry, the subsequent targets align with projected ranges at $6.067, $4.751, and finally $3.463, representing a whole retracement to pre-rally ranges.
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