The price divergence of Story (IP) is worrisome, and the market structure remains strongly bearish.

According to Gate news and TapChiBitcoin, Story (IP) has fallen 27% since June 11. However, in the past three days, the Token has slightly rebounded by 12.89%, which helps alleviate the recent fall. However, as of the writing of this article, the market structure still remains strongly bearish.

The volatility of Bitcoin has also had a strong impact on other markets. Given the current bearish outlook for IP, traders should be on the lookout for selling opportunities. This article will focus on the key resistance levels that IP needs to break through and convert into support in order to re-establish an upward trend.

The bear market will lead the next market trend

In May, IP bulls attempted to establish an upward trend. They pushed the market structure to a positive direction and drove the price above the moving average. However, this attempt was reversed at the end of the month.

The fall over the past two weeks has caused the IP to drop to new lows. Based on this downward trend, a series of Fibonacci retracement levels have been drawn. The levels of $3.41, $3.61, and $3.89 are currently key retracement levels that are expected to become resistance areas.

(Source: Trading View)

The OBV indicator has been rising continuously over the past week, indicating that buying pressure is improving, but the momentum oscillators continue to show that bears are in control. These conflicting signals can be resolved through price action, especially given that the market structure on the daily chart remains bearish.

Re-testing the supply area between 3.5 and 3.6 dollars may present selling opportunities.

According to CoinGlass data, the liquidation chart also aligns with the above conclusion. Data from a 1-month time frame shows that the 3.2-3.3 dollar range and the 2.4 dollar range are the recent significant liquidity "declines."

Prices often tend to lean towards areas of high liquidity. Positions accumulated above a local top are likely to be cleared before a new round of falls occurs. This could even push the uptrend to the $3.41 area — the 50% retracement level.

Traders should remain flexible when looking for selling opportunities. The market is expected to be highly volatile in the coming week—if used correctly, it can lead to profits.