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IP Token at Risk as Support Nears Break
IP token is currently trading at $2.89, recording an impressive 15% daily gain, which stands out against the backdrop of a broader market pullback. However, despite the price surge, derivatives market participants appear unconvinced. On-chain data suggests a strong wave of skepticism among traders betting on further downside.
Funding Rate Plunges to Multi-Month Low
According to Coinglass, the token’s funding rate has dropped to -0.62%, its lowest level in over four months. This sudden shift reflects increasing bearish sentiment in the market.
A negative funding rate indicates that short sellers are dominant, signaling expectations of a price decline.
In perpetual futures, funding rates are used to balance the difference between long and short positions. A negative value suggests that traders are paying to short the asset, expecting a reversal despite current upward momentum.
Momentum Indicators Point to Weakness
Adding to the bearish view, the Balance of Power (BoP) momentum indicator has turned negative. Currently sitting at -0.70, it implies that sellers are gaining control as buying strength fades.
Key Support in Focus: Will Bulls Hold the Line?
IP is hovering just above a critical support level at $2.78. If bullish momentum wanes, the price could break below this line, potentially targeting $1.90. A deeper drop might even send the token revisiting its all-time low of $1.36, especially under the pressure of broader geopolitical uncertainty.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
