Date: Thu, Jan 01, 2026 | 06:00 AM GMT
As the new year 2026 begins, the broader cryptocurrency market is showing modest weakness, with both Bitcoin (BTC) and Ethereum (ETH) trading slightly in the red. Despite this soft start among major assets, select altcoins are managing to outperform — including Story (IP), the native token of Story Protocol, a dedicated Layer 1 blockchain focused on decentralized intellectual property infrastructure.
IP is in spotlight with a nearly 6% daily gain, trimming its heavy 60-day decline to around 61%. While the longer-term trend still reflects recovery mode, the more important development is unfolding on the daily chart, where price action is beginning to signal a meaningful structural shift. If this setup plays out as expected, it could mark the early stages of a bullish continuation despite broader market pressure.
Source: Coinmarketcap
Rounding Bottom in Play
On the daily timeframe, IP appears to be forming a textbook rounding bottom pattern — a classic bullish reversal structure that typically emerges after an extended period of downside pressure. This pattern highlights a gradual transition from distribution to accumulation, where selling momentum fades and buyers begin to step in with increasing confidence.
Earlier in the trend, IP faced strong rejection near the $3.06 neckline zone, triggering a sharp and sustained decline through the final months of 2025. That sell-off eventually found a floor near the $1.42 level, which has since acted as a critical demand zone. Multiple defenses of this area prevented further downside and helped establish a solid base for a potential trend reversal.
Story (IP) Daily Chart/Coinsprobe (Source: Tradingview)
Since setting that bottom, IP has begun curving higher in a smooth, rounded fashion. This type of price action suggests that selling pressure is no longer aggressive, and that accumulation is quietly taking place. The recent recovery back above the $1.70 region reinforces this view, signaling that the market may be positioning ahead of a larger directional move.
What’s Next for IP?
For the rounding bottom structure to gain confirmation, IP needs to reclaim the 50-day moving average, currently positioned near the $2.172 level. A sustained move above this zone would mark a notable shift in momentum and confirm that buyers are regaining control after months of corrective price action.
Beyond that, the most significant technical barrier remains the neckline resistance around $3.06. A clean and decisive breakout above this area would validate the entire reversal pattern and could open the door for a broader bullish expansion phase, with momentum traders and sidelined participants likely re-entering the market.
Until those levels are reclaimed, the pattern remains in development. Short-term consolidation or minor pullbacks remain possible if IP struggles near the 50-day moving average. However, as long as price continues to form higher lows and holds above the $1.42 base, the broader bottoming structure remains intact.
Overall, IP is approaching a technically important inflection point. The emerging rounding bottom formation, improving price structure, and proximity to key resistance levels suggest the coming sessions could prove decisive for Story’s next major directional move as 2026 gets underway.
Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.
About Author: Nilesh Hembade is the Founder and Lead Author of Coinsprobe, with over 5 years of experience in the cryptocurrency and blockchain industry. Since launching Coinsprobe in 2023, he has been providing daily, research-driven insights through in-depth market analysis, on-chain data, and technical research.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
TAO Plummets 25% as Bittensor Co-Founder Accused of Using Token Sales to Coerce Compliance
Bittensor's TAO token dropped 25% due to allegations of centralized control by co-founder Jacob Steeves, resulting in $650 million market cap loss and $9.1 million liquidations. The controversy raises concerns about the project's governance.
Coinpedia2h ago
Market panic too extreme? MicroStrategy founder: Bitcoin has already hit bottom, quantum threats are overblown fears
Michael Saylor asserts that Bitcoin has already completed a bottoming process at $60k, and he believes concerns about threats from quantum computers are exaggerated. He predicts that in the future, Bitcoin will become the core of a digital credit system, and he mentioned that there is limited selling pressure in the market, which could help drive a new bull cycle. Mizuho also has a positive assessment of his company’s future performance.
CryptoCity2h ago
ILV Skyrockets 34% — What’s Fueling This Surge?
Illuvium's ILV price surged to $5.6, marking a 33.97% increase in just one hour, with a 24-hour trading volume of $1.88 million. This spike reflects heightened market activity and interest, driven by increasing user engagement and positive sentiment in the broader cryptocurrency market. Traders are monitoring key support and resistance levels for future price direction.
Coinfomania2h ago
Grayscale Says Aave Could Become Household Name
Grayscale says Aave could become mainstream, highlighting its decentralized lending model without intermediaries.
Bank of Canada finds Aave has lower margins due to reduced costs but flags risks from leveraged trading.
Governance issues and liquidations persist, though upgrades and ETF
CryptoFrontNews4h ago
Bitcoin Posts Its Strongest Weekly Gain Since October 2025: CPI Cooldown and US-Iran Ceasefire Provide a Double Boost, Lifting the Price to $73K
Bitcoin’s weekly gain this week reached nearly 7%, marking the strongest single-week performance since October 2025, as the U.S. core CPI data came in below expectations and a ceasefire agreement between Iran and Israel boosted market sentiment. The price briefly broke through $73,000. Market expectations have intensified that the Federal Reserve may start cutting rates sooner, and technical indicators show volatility compression, suggesting that significant price swings may be ahead. In the short term, attention should be paid to the ceasefire negotiations and the Federal Reserve’s policy direction.
ChainNewsAbmedia5h ago
Market overreacting in panic? MicroStrategy founder: Bitcoin has already bottomed out, quantum threats are overblown concern
Michael Saylor claims Bitcoin already completed its bottoming process when it reached $60k, and he believes concerns about threats from quantum computers are overblown. He predicts that in the future, Bitcoin will become the core of the digital credit system, and he also notes that there is limited selling pressure in the market, which could help drive a new bull run. Mizuho, meanwhile, has a positive assessment of the company’s future performance.
CryptoCity6h ago
