- DRIP’s RSI and OBV showed bearish dominance.
- The 61.8% retracement level needs to be flipped to support soon for bulls to initiate a rally.
As a seasoned crypto investor with battle scars from numerous market cycles, I’ve learned to read between the lines when it comes to token price movements and technical indicators. The recent surge of DRIP [DRIP] has been impressive, but I remain skeptical about its recovery potential.
On November 27th, DRIP experienced a significant increase of approximately 59% over a ten-hour period. In the last day alone, its price has risen by 32%. Additionally, within the past 24 hours, the trading volume for DRIP on the decentralized exchange Uniswap reached $141k.
Yet, these gains do not promise recovery for DRIP. The token had rallied close to 400% earlier this month. Even so, it was down 60% from the highs it reached on the 14th of November.
Is DRIP crypto still in a downtrend?
Even though DRIP crypto surged by almost 50% on November 27th, the 4-hour chart showed a bearish market structure. Notably, the recent peak of $0.1616, which occurred on the 25th, wasn’t exceeded afterward.
In the time period between October 30th and November 14th, a series of Fibonacci retracement levels were drawn based on DRIP’s rally. Specifically, the 78.6% retracement level was found at $0.1195. Over the past few trading days, however, DRIP has extended its correction phase and dipped below this significant support level of $0.1195.
Through their actions, it’s clear that DRIP market participants have probably lost their bullish confidence, as suggested by the 4-hour Relative Strength Index (RSI) over the past ten days. This bearish trend is indicated by the RSI consistently staying below the neutral 50 level since November 16th.
Similar to the falling prices, the OBV (On-Balance Volume) was also trending downward. The bulls’ failure to maintain a prolonged uptrend following the significant gains earlier in the month raised concerns.
Realistic or not, here’s DRIP’s market cap in BTC’s terms
A break above the latest low at $0.1521 and the $0.162 resistance level would indicate a potential bullish trend for DRIP. However, until these levels are surpassed, potential buyers should exercise caution, even if the token experiences significant daily increases.
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2024-11-29 01:11