Story price is showing strong signs of a potential trend reversal after an 11.83% surge. Key support at $3.12 is holding, with oversold RSI and rising volume pointing to more upside.
After an extended correction, Story (IP) has finally shown a meaningful bounce, climbing 11.83% and reclaiming a crucial resistance level. The current market structure suggests the bottom may be in, especially with volume surging and RSI exiting oversold territory. Price action has now broken above $3.12, a region aligned with the point of control and prior high timeframe resistance. As long as price holds this level, the door remains open for a continued rally toward $4.17, and possibly higher.
Key technical points:
- Key Support Level: $3.12; in confluence with point of control and local breakout
- Next Resistance Target: $4.17; followed by $4.90 as an extended bullish target
- Oversold RSI: Now exiting extreme levels, signaling momentum recovery
- Volume Behavior: Recent surge in volume at support confirms buyer presence and potential bottom
From a technical perspective, the swing low was formed at the value area low of the recent corrective move. This area aligned closely with high timeframe support at $2.61, which held across multiple daily candle closes, suggesting accumulation at the base. The follow-through came with an impulsive breakout candle, pushing price above $3.12 and confirming a short-term shift in trend.
The $3.12 region is significant. Not only does it align with the point of control, but it has also transitioned from resistance into potential support. If price continues to close above this level on high volume, it would confirm strength in the move and raise the probability of a breakout continuation.
The RSI has also been deeply oversold throughout the downtrend and is now showing signs of recovery. Combined with the surge in volume at support, in stark contrast to the low-volume grind during the downtrend, this signals that demand has returned.
The next resistance sits at $4.17, a natural target for the current leg. A move to this level would represent a further 32% gain from current prices. If bullish momentum remains, $4.90 becomes the next macro target, with the potential for a full trend rotation.
What to expect in the coming price action
If IP continues to close above $3.12 with strong volume, a rally toward $4.17 looks increasingly likely. Watch for consolidation or impulsive continuation in this zone, both will reveal the next major move.
