Key takeaways
What Sparked Story Protocol’s Latest Rally?
The debut of its on-chain prediction marketplace has boosted demand and boosted trading activity.
What levels must be recovered to continue the rise?
IP needs to rise above the EMA20 at $3.12 to target the EMA50 near $4.4.
After defending the $2.0 support, History Protocol (IP) made a strong comeback, reaching a high of $3.2 before retracing.
At press time, IP was trading at $2.8, up 19.32% on the daily charts. During the same period, its volume jumped 197% to $181 million, reflecting the growth of on-chain activity.
But why is Story Protocol booming?
Story Protocol Launches On-Chain Prediction Marketplace
By 2025, prediction markets have become people’s favorite markets, with trading volume exceeding $3 billion according to Forbes.
Amid this growing demand, Story Protocol has stepped up to integrate blockchain and broader cryptography.
According to Story Protocol, the blockchain unveiled its first prediction market with MusicbyVirtuals, allowing users to bet on financial and cultural events.
These markets will facilitate betting on various cultural topics such as K-pop chart positions and cryptocurrency prices.
The Story Blockchain will process settlements for various bets. This step highlights how financial trends and forecasts can be tokenized and traded on-chain.
Even more significantly, this highlights Story Protocol’s goal of moving beyond reliance on intellectual property and capturing real-world cases.
Demand follows suit
It is important to note that after the launch of the prediction market on Story Protocol, the demand for the altcoin increased significantly.
According to Coinalyze data, buyers took over the market from sellers who had returned. Over the past 24 hours, the altcoin saw 2.1 million buy volume, compared to 1.7 million sell volume at press time.
Source: Coinalyse
As a result, the altcoin recorded a positive buy-sell delta of 400,000, a clear sign of aggressive spot accumulation.
Exchange activity reinforced this trend, with $18.86 million in outflows compared to $18.22 million in inflows, according to CoinGlass.
Source: CoinGlass
As a result, the Spot Netflow altcoin fell 177.84% to -$631.86K, indicating higher outflows.
Usually, increased FX outflows reduce the supply available for immediate sale, causing upward pressure on an asset.
Can the wave propel the IP to $4?
The IP rallied as demand for the altcoin soared following the start of an on-chain prediction market.
Due to this, the altcoin has signaled a change in upward momentum, with the DMI Stochastic Momentum Index turning green at the time of writing.
This implies that buyers have recently stepped in for a relief move IP position in preparation for a near-term bullish rebound.
Source: TradingView
However, the indices remain negative, confirming that the bearish structure is still in place. The altcoin is also trading below all major moving averages.
For any sustainable upside, IP must first reclaim the EMA20 at $3.12, which could pave the way for a move towards the EMA50 at $4.4.
If buyers fail to regain these levels, the rally will lose momentum and the price may return to the $2.4 support zone.
