Selling pressure on River (RIVER) has intensified following the breakdown of a major support level at $11.20. After a 32% drop, the altcoin printed its second consecutive red candle on the daily chart, with its price action suggesting that the press time level might be a make-or-break zone for the crypto.
On 18 February, RIVER lost over 32% of its value in just 24 hours, with the altcoin trading at $8.51 at press time. Despite the sustained price decline, market participants have shown strong interest in the asset though. This can be evidenced by the trading volume surging by more than 110% to $90.95 million.
Investors and traders show mixed sentiment
Amid this uncertainty, derivatives and analytics tools revealed that some traders strongly believe in a potential reversal, while others are still offloading their holdings.
According to Nansen, RIVER’s exchange reserves across CEXs and DEXs jumped by 7.08% in 24 hours. This surge suggested that investors have been moving their RIVER holdings to exchanges in preparation for a potential sell-off.
Source: Nansen
On the other hand, the derivatives analytics platform Coinglass found that intraday traders have been increasingly betting on the bullish side. Strong interest emerged around the $8.04-level on the downside (support), while the $8.58-level on the upside (resistance) saw comparatively lower interest.
At these levels, traders built $1.77 million in long leveraged positions and $1.02 million in short leveraged positions. This seemed to imply that bearish interest might be fading, with traders strongly believing that RIVER’s price is unlikely to fall below $8.04 anytime soon.
Source: Coinglass
RIVER’s price action eyes $8.25-level
On the daily charts, RIVER’s price seemed to be taking support at the key level of $8.25.
Based on its previous performances, when the altcoin previously broke below the $11.20 support, it saw a sharp decline of over 35%. If RIVER breaks this support again, it could see another heavy fall in the coming days. Especially since there appeared to be no clear support near this level.
Source: TradingView
The bearish thesis would only be validated if RIVER closes a daily candle below the $8.25-level. If that happens, the altcoin could record a further downside move of around 48% in the coming days. However, if the price holds above this key support, a recovery might follow.
Meanwhile, amid this uncertainty, a crypto expert is predicting that RIVER’s price could continue its downward momentum and even hit the $7.50-level.
Source: X/TraderEthem
At the time of writing, the Average Directional Index (ADX) had a value of 18.89, below the key threshold of 25. This finding highlighted the asset’s weak directional momentum.
Final Summary
- Following a 32% fall, RIVER’s price action is now all dependent on a key price level on the charts.
- Altcoin’s exchange reserves jumped by 7.08% while intraday traders have been increasingly betting on a potential reversal.
Source: https://ambcrypto.com/river-tanks-32-in-24-hours-but-are-more-losses-ahead/
