The IP token recently experienced a nearly 10% price correction, sparking debate within its community on whether this dip is merely a temporary setback or the beginning of a larger downtrend. However, a closer look at both technical indicators and on-chain metrics suggests a cautiously optimistic outlook for a potential reversal.
Charting a Potential Comeback
The recent price decline saw IP's value test a crucial market gap around the $11.37 mark on its daily chart. This level proved significant, as the token appeared to bounce strongly, indicating that the downturn might indeed be a short-term correction rather than a sustained bearish trend. Should this reversal solidify, the next target for recovery is eyeing the $15 resistance level, making the $11.37 support zone a critical line in the sand for IP's immediate future.
On-Chain Data Hints at Resilient Demand
Despite the technical pullback, various on-chain metrics are painting a bullish picture. CryptoQuant’s Spot Retail Activity data reveals a significant uptick in retail participation, with traders actively increasing their engagement in IP’s spot market. This surge in retail demand is crucial for stabilizing price action. Further bolstering this sentiment, the Futures market shows a compelling increase in buyer dominance. Futures Taker CVD data highlights that buyers are favoring long positions, even as spot prices faced a dip. This collective demand from both retail spot traders and Futures buyers suggests an underlying strength that could prevent further declines and potentially fuel a recovery.
The Path Ahead
While the possibility of further bearish continuation cannot be entirely dismissed, especially if the $11.37 support fails, the current confluence of signals from technical bounces and robust on-chain demand points towards cautious optimism. The growing engagement from retail and Futures buyers could be the catalyst needed to confirm a reversal, transforming the recent dip into a temporary correction on IP's upward trajectory.
