River (RIVER), which is an on-chain abstraction stablecoin system, crashed by over 19% in the last 24 hours.
This means that the altcoin has undergone a full retracement of the 19% upward rally that occurred three days ago. What has driven this decline, and is RIVER showing signs of reversal?
Why is the price of RIVER falling?
First, the decline was fueled by selling pressure, as indicated by the 52% rise in daily volume. When prices fall with increasing trading volumes, this suggests potentially selling for profits after the rally seen mid-week.
The total value locked (TVL) fell from $123 million to $91 million, resulting in a capital loss of over $30 million. The chart shows that TVL has been bouncing between these levels since February 6.
Additionally, total USD inflows were negative during the day with a figure of $79,000. This indicated that traders were withdrawing their capital from the altcoin.
Additionally, bullish community sentiment was declining, with bearish odds increasing from less than 20% to 38%.
This indicates that traders are gradually losing confidence in an uptrend, especially as RIVER fell from an all-time high of $88. This represents a decrease of more than 10 times in just three months.
Still, this price drop could be a blessing in disguise for bullish traders if history repeats itself.
Can bulls make another 245% move?
Currently, RIVER is trading at a key support level, which has resulted in an increase of over 245%. Then, RIVER price rose from around $8 to levels above $30 within a month.
Before going down to this $8 zone, RIVER consolidated for more than a week between $10 and $13. The breakdown candle was immediately rejected, indicating that the bulls were paying attention to this level.
Looking at the cumulative volume delta (CVD), the reading was negative at 248K. This indicated selling pressure, although it had declined from a daily peak of 2.06 million CVD.
Interestingly, the Long/Short ratio reading for the accounts was 2, meaning the bulls were buying the RIVER crypto. This suggests that now could be a good time to buy. However, this purchase took place on the Binance futures market, while the spot market was calm.
With this in mind, River Crypto bulls could aim to restart another 245% rally. Such a move would push the altcoin beyond $30. However, this would be true if the altcoin rose above the high end of the range at $13.
Final summary
- RIVER’s price collapsed by approximately 19% amid dollar outflows, falling TVL, and profit-taking.
- RIVER can only break above $30 if bulls can break and stay above $13 for an extended period of time.
