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.
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.
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.
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