River (RIVER) is up more than 15% in the past 24 hours as its market cap climbs back above $140 million. This surge came as the altcoin season index also moved back above the 40 mark.
RIVER breaks through one-month resistance
Price charts show that RIVER fluctuated over the past month but eventually broke out. The sideways range came immediately after the price fell sharply to a year-to-date low of $4.33.
After breaking through one-month resistance, RIVER reached a daily high of $7.77. However, the altcoin faces resistance around this level. This level is responsible for the breakout that led to this year’s low.
Despite the rejection, the MACD bars remained green, indicating that buyers are still present. This is confirmed by the Cumulative Volume Delta (CVD), which is at 10.77K. This means that over 10,000 RIVER tokens have been purchased at the time of writing this article.
At press time, RIVER was trading towards the $7 breakout level. Only staying above would help maintain buying momentum.
Otherwise, the altcoin could fall range-bound or below. Such a decision would invalidate the current bullish scenario.
Short Liquidations Fuel RIVER Price Rise
It is worth noting that the liquidation of groups of short positions around $7 fueled this breakout. A short order squeeze between $7.20 and $7.50 further accelerated the uptrend.
However, as the price declined from $7.70, groups of long orders formed below the range resistance. Millions of dollars of long positions on RIVER were between $6.79 and $7.
Meanwhile, token holders on Ethereum (ETH) were growing but remained stable since early April. According to Token Terminal, there were a total of 3.7K holders on the ETH network.
Sellers are starting to outpace buyers
The rally is still facing resistance as sellers have started to dominate buyers. Sales volume of $6,633 increased by over 112%. Buying volume was higher, at $6,645, but the rate change was down, at 86%.
Likewise, the number of sales caught up with purchases and remained on par. Sales increased by 274%, suggesting that retailers were making profits.
An increase in the foreign exchange balance confirmed these selling activities. More than 20,189 RIVER tokens were deposited, an increase of 4.14% during the day, according to Nansen AI.
Overall, the data showed that the altcoin would remain bullish unless it breaks above $7. Selling activity suggested a potential correction was next, but it was unclear how deep it would be.
Final summary
- RIVER rose more than 15% after breaking a month-long sideways consolidation.
- RIVER’s rally was driven by short liquidation, but on-chain activity showed traders started to take profits.
