River [RIVER] has climbed 20% in 24 hours, clocking in gains for the second consecutive day. The altcoin rallied to a high of $86 in the first month of the year from a low of $3. However, it has since declined to these lows but has rebounded to $19, at press time.
More stablecoin partnerships, such as the crvUSD one, have driven the rebound in the past two days. The stablecoin will be swapped at a 1:1 ratio with River’s satUSD.
Additionally, there was a market-wide surge in tokens associated with the stablecoin narrative. Apart from RIVER crypto, Stable (STABLE) also had similar gains the previous day.
Additionally, the token’s liquidity was growing following the launch of the RIVER/USDT pool on PancakeSwap.
These fundamentals propelled the crypto and maintained its rally momentum.
RIVER crypto eyeing the $23 target
On the hourly charts, RIVER crypto consolidated in a triangle pattern for about a week. The contraction of the pattern led to a breakout that confirmed the bullish bias with a retest at the $12.66 level.
Ever since, RIVER has been trading toward $23 as it bounces off the ascending trendline support. This was evident from the Trend Strength Index (TSI) at 0.86, which was only a few points away from hitting the maximum level.
Additionally, the sentiment reading was at 93%. This indicated that participants were actively mentioning and engaging with the token. However, the community’s bullish expectations were at 57% as per CoinMarketCap.
The move toward $23 looked possible, but breaking past that level depended on the rally’s strength. To get there, bulls first needed to clear $20, a threshold where bears reacted quickly and aggressively, as shown by the candle wick.
Apart from the technical outlook, trader behavior was also important.
Shorts are seeing a long day!
The continuation of the breakout was hurtful for the sellers. According to CoinGlass, approximately $3 million in short positions were liquidated during the rally. In that spirit, very minimal liquidity formed above $19 at press time.
At the same time, long positions were building behind every swing low. The lowest and most significant liquidity level with longs during the day was at $16. The other key level above it was $17.
Capital inflow surges
The data showed that traders were continually putting in longs. This was confirmed by the Long/Short ratio, which was above 1 as of writing. Traders were buying massively on Binance, OKX, and Bybit.
The volume heatmap revealed that most of it came from futures trading, with Binance accounting for $806 million while OKX had $612 million. Futures net flows in 12 hours were at $8.37 million, while spot flows were only $100K.
However, this cautioned that the rally could be leverage-driven. Such a situation would not be lasting, especially if there is overleveraging. Thus, traders need to be wary of the $20 and $23 levels.
Final Thoughts
- RIVER is up 20%, driven by partnerships, the stablecoin narrative, and price breakout.
- RIVER eyes the $23 level but faces a hurdle at the $20 level.
