Earlier this week, AMBCrypto reported that River [RIVER] could see further short-term gains. The cross-chain liquidity protocol’s token reached $23, as AMBCrypto forecast, but there was potential for more short-term gains.
After reaching a high of $24.2 on Thursday, the 12th of February, RIVER has receded by 18.9% to $19.62. However, this brush of the $24 supply zone was an interesting development for traders.
The short-term bullish case for RIVER
The 1-day swing structure was bearish. The $16.1 swing low had been breached, and the longer-term bias was now bearish. This timeframe’s MACD fell below the zero line to signal downward momentum over the past two weeks.
The CMF was at an extremely low value of -0.36 to highlight heavy capital flows out of the market. Combined with the bearish structure, it informed traders to watch for a bearish continuation.
Yet, during its slide from all-time highs, RIVER left behind imbalances on the 1-day timeframe. Highlighted in white, these areas at $26-$33 and $35-$40 represented supply zones that are likely to get tagged in the coming days.
The liquidation heatmap showed pockets of liquidity nearby. The closest ones to the current market price were at $15 and $25, and roughly equal in the magnitude of liquidations.
Given the upward momentum that RIVER has exhibited over the past week with its 55.2% bounce, it was possible that the move would extend higher. Beyond $25, the $33 and $37.7 levels were also notable liquidity clusters.
Traders, watch out for a rejection
Strong capital outflows, as highlighted by the CMF, demand attention. Although last week’s gains turned the lower‐timeframe structure and momentum bullish, that strength may not last.
Traders should treat the imbalances and magnetic zones overhead as supply areas where selling pressure on RIVER is likely to emerge.
Final Thoughts
- River has rallied 55% in a week, but the volume indicator warned of holders selling into the rally.
- It was risky to buy this extremely volatile asset, which rallied 660% in under three weeks and retraced the entire move a week later.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
