Key Takeaways

Why could IP’s drop be temporary?

Strong retail participation and buyer dominance in Futures suggest the decline may be a short-term correction, not a new downtrend.

What levels are critical for reversal?

Holding above the $11.37 market gap is key; failure to do so could trigger further downside before a potential recovery.

Story [IP] prices have dropped by nearly 10% over the last 24 hours, reflecting a building bearish momentum on its price after recent gains.

The move has left the token community with mixed reactions on whether the drop was just a price correction or a start on a new trend.

Narrowing down to the daily chart, the drop left the token prices testing a market gap at around $11.37. This insinuated that the drop was just a short-term correction.

As seen on the charts, IP appeared to have bounced-off strongly, indicating that a reversal could have just started, with the next target level being $15 resistance.

On-chain metrics lean bullish

Despite the technical pullback, on-chain activity also sparked bullish signals.

CryptoQuant’s Spot Retail Activity Data showed heightened retail participation in IP’s spot market, with traders steadily increasing their activity over the past day.

This influx of retail demand could help stabilize price action, especially if broader market sentiment remains supportive.