Is IP’s Rally Just a Dead Cat Bounce? 🐱🚀

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Layer-1 blockchain coin IP is the star of the show today, folks! With a price surge over 10%, it’s like the Energizer Bunny of the crypto world—just keepin’ on goin’ and goin’! 🐰💰

But wait, hold the phone! While most assets are snoozing or taking a nosedive, IP’s rally is accompanied by a spike in short interest. Could this be a classic case of a dead cat bounce? 🐱‍🚀

Traders Bet Against IP’s Double-Digit Rally

IP is currently trading at $2.89, up a whopping 15% in just 24 hours. While this price action is like a breath of fresh air in a market that’s been as exciting as watching paint dry, IP derivatives traders are not buying the hype. On-chain data shows they’re gearing up for a price drop, even as the coin climbs higher.

According to Coinglass, IP’s funding rate has plummeted to -0.62%, its lowest in over four months. This is a clear sign that traders are betting against the rally, like a bunch of pessimistic seagulls waiting for the tide to turn. 🦆🌊

Funding rates are the periodic payments between long and short traders in perpetual futures markets. When funding rates are positive, it’s like a party for the bulls, but when they’re negative, it’s a bear’s picnic. 🐻🎉

IP’s funding rate hitting a multi-month low is a big red flag, indicating that many traders are betting on a price drop. They think the rally is as sustainable as a clown on a tightrope. 🤹‍♂️🌈

Moreover, the coin’s negative Balance of Power (BoP) on the daily chart is a bearish sign. As of this writing, the BoP stands at -0.70 and is trending downward. This momentum indicator is like a weather vane pointing to more price dips. 🌦️📉

The BoP measures the strength of buyers versus sellers. Negative readings suggest that sellers are in control, which could lead to further price declines. It’s like a tug-of-war where the bears are pulling all the weight. 🐻💪

Will Bulls Defend the Line or Give Way to Bears?

At its current value, IP is trading above a key support level at $2.78. If demand dries up and the coin takes a hit, it could break below this level and head toward $1.90. That’s like a rollercoaster ride down the bear market hill. 🎢📉

If the bulls can’t hold this line, the IP token price could revisit its all-time low of $1.36. That’s a bummer, but hey, at least it’ll be a great time to buy the dip, right? 🤷‍♂️🛒

However, if the coin gets a surge of new demand, it could reinforce its rally and push toward $3.89. That’s like a phoenix rising from the ashes, baby! 🐦🔥

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2025-06-20 12:04