IP's latest price movement, the truth behind sharp rises and falls

IP is currently in a period of consolidation with strong buying and selling pressure. Looking at the 4-hour chart, IP surged from 1.4 to 4.1, then dropped back to 2.6, and is now stuck around 2.6.

Bearish signals: The short-term moving averages have crossed downward (MA7 crossing below MA30), indicating that selling pressure exceeds buying pressure recently. If 2.5 cannot be held, the price may fall further to around 2.4.

Bullish signals: If the price stabilizes between 2.5 and 2.6 and trading volume increases, a solid rebound could follow.

2. Combining the latest news, here's why prices drop right after a rise

Many beginners don't understand why the token price falls even after a project upgrade. Let me clarify the logic over these three days:

January 14 (upgrade): Story Protocol completed the "Yusanari" network upgrade. This should have been a major positive, as the technology improved, and the price should have risen accordingly.

January 12–14 (abnormal data): Although the price was declining, trading volume on Korean exchanges surged dramatically. What does this indicate? It suggests large-scale trading activity, possibly involving wash trading or a change in market control.

Community sentiment (key reason): Despite high trading activity, community sentiment remained extremely pessimistic. Traders were complaining about "excessive volatility" and "a chaotic market."

3. Straightforward explanation: Why does a positive event lead to a price drop?

The logic is simple:

Smart money is dumping: Using the positive news of the upgrade, insiders are selling tokens at high prices to retail investors, which explains the high trading volume on Korean exchanges.

Due to extreme market volatility, investors are hesitant to buy, resulting in insufficient buying pressure. Even a small amount of sell orders can crash the price. This is a classic case of "good news is bad news" when the positive news has already been fully priced in.

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