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.
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.
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.
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.
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.
