Today, the virtual currency market experienced significant movements, with prices fluctuating dramatically and traders recording huge losses. Especially, Story (IP) gained attention due to recent volatile price actions noted today. IP’s value dropped from $3.9 to $2.9 in an unexpected plunge that caught many investors unaware. Reason? The abrupt fall happened in isolation from wider market trends, prompting rumours about organized selling or insider activity.
Liquidation surprised IP long traders
Today, IP came under the spotlight in the cryptocurrency community due to its unusual price movement over the past 4 hours. The asset witnessed a massive fall of over 20% within minutes, causing its market valuation to drop below $1 billion.
This plunge has caused huge liquidations among traders who betted long positions. The sell-offs triggered substantial losses to traders who created long positions in the IP market. Data showed that traders who betted long on the futures of IP lost $1.17 million compared to $902,000 wiped from short position traders.
IP’s failure to maintain a price recovery was the catalyst of this significant liquidation witnessed majorly by long traders. This decline erased previous gains that enabled the asset to trade above the $3.8 resistance level. However, the asset later regained strength and successfully supported its value at a significant low of $3.
Why did the IP market crash today?
Story’s price drop was triggered by an interaction of factors like supply and demand and market sentiment. The wider crypto market experienced relative stability during that time, with BTC hovering at $84k and no significant trend affecting alternative cryptocurrencies.
This made Story’s abrupt fall and pullback occur as an isolated event. Speculations point out the cause of the fall as organized selling or insider activity among crypto groups who sold out huge quantity of IP tokens at discounted prices through OTC deals.
The Story market selloff is significant as it comes after Mantra (OM) caused widespread panic following its sharp price fall yesterday, April 14. However, trading charts now show that IP has made a recovery, with its value currently standing at $4.18, suggesting that buyers are entering the market.
