DRIP [DRIP] made a significant leap of 59% on November 27th in just ten hours. Over the past 24 hours, its value has increased by 32%, with a trading volume of $141k on the decentralized platform Uniswap [UNI].
However, these advancements do not guarantee a full recovery for DRIP. Although the token had previously experienced a rise of nearly 400% earlier this month, it had also dropped by 60% from its peak on November 14th.
Is DRIP Cryptocurrency Still Experiencing a Downturn?
Despite the close to 50% hike in DRIP cryptocurrency value on November 27th, the current market trend on the 4-hour chart remains bearish. The recent high of $0.1616 on the 25th of November has not been surpassed.
A series of Fibonacci retracement levels were established following DRIP’s surge from October 30th to November 14th. The significant 78.6% retracement level stood at $0.1195. Recent trading days witnessed DRIP breaking below this crucial support level during its retracement period.
During this phase, the market participants of DRIP displayed signs that their optimism has likely diminished. The 4-hour RSI over the past ten days remained below the neutral 50 mark for a considerable time since November 16th.
Additionally, the OBV showed a downward trajectory, mirroring the price movement. The lack of sustained upward momentum by the bulls post the earlier substantial gains this month raised concerns.
For DRIP to indicate a potential bullish trend, it must surpass the recent high of $0.1521 and break through the resistance zone at $0.162. Until then, buyers should remain cautious when dealing with this token, even if it registers double-digit percentage gains in a single day.
Disclaimer: The information provided is the writer’s personal opinion and does not serve as financial, investment, or trading advice