After a period of robust capital inflows propelled River [RIVER] to an impressive 200% rally, the cryptocurrency has encountered a significant reversal, wiping out nearly half of its earlier gains. This downturn isn't merely profit-taking; a confluence of shifting market sentiment, liquidity outflows, and confirming technical indicators points to a decisive bearish pivot for RIVER.
Investor Sentiment Takes a Dive
The market's outlook on RIVER has turned distinctly bearish, as evidenced by CoinMarketCap Community Sentiment data. What was once a predominantly bullish sentiment has plummeted to approximately 32%—one of its lowest readings ever—down from a recent high of 56%. This sharp shift indicates that only a fraction of voters remain bullish, leaving bears firmly in control. Complementing this, a slight dip in the number of wallets holding RIVER, despite its modest appearance, gains significance given that a vast majority (88.09%) of RIVER's supply is concentrated in the top ten wallets, hinting that major holders may be actively reducing their exposure.
Capital Flees as Bearish Pressure Mounts
The withdrawal of capital from RIVER’s ecosystem is accelerating, signaling a deepening bearish trend. Open Interest (OI), a key measure of capital committed to perpetual contracts, has declined by roughly 5%, equating to about $7.75 million exiting the market. This substantial outflow has pushed the total OI down to $136.61 million. Further dissecting this movement, the Funding Rate has slipped into negative territory (-0.0059%), which indicates that short positions are now outweighing long positions. This suggests a strategic buildup of bearish pressure rather than a panic-driven market exit, setting the stage for potential further price declines if these capital outflows persist.
Technicals Reinforce the Downtrend
Technical indicators offer little solace, largely reinforcing the grim outlook. The Moving Average Convergence Divergence (MACD) remains firmly in negative territory, marking an extended period of sustained bearish readings—a clear sign of prolonged selling pressure. While the MACD histogram has shown a subtle shift from deep red to lighter shades, hinting at a potential slowdown in the rate of selling, it does not suggest an imminent reversal. Concurrently, the Parabolic SAR continues to flash bearish signals, with its dots consistently appearing above the price action, unequivocally confirming that downside control remains intact and the overall downtrend is firmly established.
