River (RIVER) made a decisive move, rising by around 34%, the largest gain recorded in the crypto market in the last 24 hours. Buyer sentiment tilted sharply in favor of the bulls.
Despite the strong recovery, investors were expected to remain cautious about the long-term outlook. Indicators that track investor sentiment have weakened significantly.
At press time, only 58% of investors maintained a bullish stance on the altcoin, down from 82% earlier in the day. This change suggests that confidence has moderated despite the strong price movement.
Dynamics remain high
Although some investors have reduced their bullish positioning through sentiment-based measures, technical indicators show that price momentum remains firmly intact.
At the time of writing, the Moving Average Convergence Divergence (MACD) has moved closer to positive territory, signaling a bullish market structure for RIVER.
The continued expansion of the green bars of the histogram, each higher than the previous one, reinforced the idea of strengthening bullish momentum. This trend generally reflects sustained buying pressure and supports a constructive outlook.
Source: TradingView
Likewise, the Relative Strength Index (RSI), which measures the speed and magnitude of price changes, has placed RIVER in favorable bullish territory.
An RSI reading between 50 and 70 generally signals bullish control. RIVER’s RSI was hovering around 55, suggesting that buyers still dominate.
At the same time, the altcoin remained below overbought conditions. This left room for further upside if momentum continues.
A threat of critical resistance
However, a significant level of resistance lay just ahead.
This area previously triggered a price rejection and remained a critical level. Historically, such resistance often attracts selling pressure after sharp rebounds.
If RIVER fails to move beyond this zone, a pullback could become increasingly likely.
Source: TradingView
In case of rejection, RIVER could decline towards the $12.24 region. This scenario implied an average correction of around 38%.
A lighter release could produce a shallower fold with limited disadvantages.
However, aggressive profit-taking could accelerate losses and expose the asset to greater downward pressure.
Short-term outlook remains positive
In the short term, derivatives market data supports the possibility of continued upside.
At the time of writing, open interest increased by $27.2 million, bringing total open interest to $125.16 million. This increase indicates a renewed participation of traders.
Source: CoinGlass
Meanwhile, funding rates turned positive and stood at 0.0078%. This meant that long positions paid off short positions, reflecting the bullish bias of perpetual futures markets.
The combination of rising open interest and positive funding rates suggests that new capital has entered the market with a bullish bias.
If the MACD and RSI continue their upward trend and leveraged long positions remain concentrated to the upside, RIVER could extend its rebound.
Final summary
- RIVER surged 34% in 24 hours, making it the best performing asset in the crypto market during the period.
- Investor confidence weakened despite the rally, with bullish positioning falling from 82% to 58%.
