DRIP crypto sees 32% daily gain, but bulls struggle for control

DRIP [DRIP] surged 59% on the 27th of November in the span of ten hours. In the past 24 hours, its price is up by 32% and the 24-hour trading volume on the decentralized exchange Uniswap [UNI] was at $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?

Source: DRIP/USD on TradingView

Despite the nearly 50% gain DRIP crypto saw on the 27th of November, the market structure on the 4-hour chart was bearish. The recent lower high at $0.1616 from the 25th of November was unbeaten.

A set of Fibonacci retracement levels were plotted based on the rally DRIP registered from the 30th of October to the 14th of November. The 78.6^ retracement level was at $0.1195. The past few days of trading saw DRIP extend its retracement phase below this key support.

In doing so, DRIP’s market participants showed that their bullish conviction has likely evaporated. This was evident on the 4-hour RSI of the past ten days. The momentum indicator has remained below neutral 50 for the majority of the time since the 16th of November.

The OBV was also in a downtrend, like the price. The inability of the bulls to muster a sustained upward move after the strong gains earlier in the month was worrisome.

A move beyond $0.1521, the recent lower high, and the $0.162 resistance zone would be the first signs of bullishness for DRIP. Until then, buyers must be wary of the token, even if it posts double-digit percentage gains within a day.