IP Token Plummets, Trading Volume Soars by 200%! Is This a Market Manipulation Trap or 'Smart Money' Inducing Liquidation?
In the cryptocurrency market, a price drop combined with a surge in trading volume often signals that a storm is about to come! Story Protocol ($IP) saw its trading volume spike to $64.5 million within 24 hours, soaring over 200%, but the price fell sharply in the opposite direction. Who is behind this move?
The surge in trading volume and the drop in price—typical 'volume-price divergence' signal:
A large amount of chips was dumped at high levels, suspected to be someone leveraging market sentiment to distribute at high prices;
Retail investors entered to pick up the shares, but the price failed to stabilize, indicating that the major players have not defended the market or are in the process of consolidation;
RSI has dipped into the oversold zone, releasing preliminary signals of a potential end to the pullback, but a bottom confirmation has not yet been seen.
So why is it falling? Four possible reasons revealed:
Technical pullback after a surge: proactive selling after consecutive rises;
Early investors cashing out: some addresses are selling off while it's hot;
Token unlocking expectations: increased circulation expectations suppressing the market;
Potential negative news or short sellers lurking: K-line and capital flows are diverging, and the possibility of inducing buying cannot be ruled out.
But don't rush to short! The surge in trading volume also means—'attention is focusing'!
Once the selling pressure is released, strong major players may start buying back;
Technically, approaching the lower boundary of the channel, the $2 mark will be a key support area;
If a double bottom or low-volume consolidation pattern forms, it could initiate a new wave of rebound!
This is a typical 'smart money game': when retail investors panic sell, the next wave of upward momentum might be quietly brewing. Remember: beneath the plummet, it's often the major players building their positions.
Are you now choosing to follow the trend and cut losses, or are you seizing the opportunity to occupy the potential rebound position in advance?
