River (RIVER) is up 25% in 24 hours and is up 11% for the week. According to data from Coinalyze, its strong short-term gains have led to a considerable increase in open interest (OI). OI soared 42%, showing that speculators were eager to ride the RIVER trend higher.
This speculative interest has not been accompanied by strong spot demand, based on the spot CVD indicator. At the same time, the funding rate was also negative, showing that short sellers were active.
Technical analysis showed that RIVER could reverse its uptrend, even though short-term indicators gave warning signals.
The bullish arguments for RIVER
Large short-term gains and speculative interest do not always translate into a lasting trend. On this occasion, the River bulls could once again reverse the trend in their favor.
High volatility in late January and early February saw RIVER rally to $88.7 and fall 82% in one week. It eventually reached a low of $7.1. However, it is the falling high of $24.2 that we are interested in now.
This level was crossed on Wednesday March 18. This signified a bullish structure change on the one-day time frame. Additionally, the old local resistance at $18.38 was tested as support and held up well.
The CMF was at +0.01 but had been above +0.05 in recent days to show strong capital inflows. The MACD also made a bullish crossover and moved back above the zero line to signal bullish momentum.
This momentum can probably be maintained. In the coming days, a retracement towards $18 or even lower is possible.
Should traders buy the dip or wait for a breakout?
The structure on the 2-hour chart was bearish. The indicators also indicated that the short-term momentum was in favor of the sellers and the CMF was below -0.05.
This means that River traders can expect a bigger price drop in the coming days. The immediate target is $15 for a retracement, with a possible decline to $11 in the event of a strong sell-off in Bitcoin (BTC).
At the same time, a return above $28.7 would indicate a breakout. Traders should be prepared to buy the breakout, while also being prepared to watch for a bullish reaction to $15 and $17 if prices decline.
Final summary
- River exhibited a bullish price structure over a 1-day time frame.
- Buyers can keep an eye on the altcoin. The $28 and $15-$17 levels were the most important nearby levels at which buyers would want to enter the market.
