Story Protocol Down 50% from ATH as Fundamentals Show Weakness – Is $5 Next?

Story Protocol (IP) price tumbled 50% over the last 24 hours after aggressive profit-taking drove the IP token down from its all-time high of $14.99 to $7.25 at press ￰0￱ decline followed a recent 120% rally that lifted IP token from $5.58 in mid-August coinciding with co-founder Jason Zhao’s departure before reaching its peak of $14.99 four days ￰1￱ attributed the brief rally to the project’s announcement of the Origin Summit held on September 23

in Seoul during Korea Blockchain ￰2￱ produced ￰3￱ Black Label produced ￰4￱ Entertainment produced ￰5￱ K-Pop moguls joined us onstage at Origin Summit in ￰6￱ from them about the global rise of Korean IP ↴ ￰7￱ — Story (@StoryProtocol) September 24 2025 The summit served as a major event connecting AI intellectual property and blockchain

bringing together speakers and executives from entertainment and IP companies including SM Entertainment Azuki and ￰8￱ crypto and investment firms

including Grayscale Polygon and Animoca Brands also participated to discuss IP tokenization through Story’s ￰9￱ Protocol Weak Fundamentals See Investors Question Project Sustainability However

the event-driven surge couldn’t sustain the token against its weak fundamentals regarding project value creation and ￰10￱ from DefiLlama shows that Story Protocol with a market capitalization of $2.27 billion could only boast of $29.09 million in total value locked (TVL).) September 26 2025 Story Protocol’s whitepaper presents the project as a blockchain initiative aimed at transforming intellectual property management through on-chain ￰11￱ of relying on traditional copyright frameworks

the platform empowers creators to register monitor and monetize their works through a decentralized ￰12￱ includes books films

music and AI-generated ￰13￱ protocol has raised approximately $134.3 million in equity financing across multiple ￰14￱ include a May 2023 seed round generating $29.3 million a September 2023 Series A yielding $25 million and an August 2024 Series B led by Andreessen Horowitz’s a16z crypto division

contributing $80 ￰15￱ these investments the limited value captured by the project has damaged its reputation with many now viewing it as another unsustainable crypto ￰16￱ Analysis: EMA Breakdown Shows Story Protocol’s Path Back to $5 Support Technically the Story Protocol chart reveals a dramatic parabolic rally from around $6 in early August to nearly $15 in mid-September

representing roughly a 150% ￰17￱ price has since dropped approximately 55% to the current level of $7.237 confirming massive selling after reaching all-time ￰18￱ technical setup presents several warning signs for ￰19￱ token broke below the ascending trendline that supported the entire August-September rally confirming the uptrend violation.