The cryptocurrency River [RIVER] has recently demonstrated significant volatility, experiencing both a notable rally and subsequent pullback, sparking debate among traders regarding its short-term trajectory. While the asset enjoyed a substantial 55.2% bounce over the past week, bringing it to a high of $24.2 before settling around $19.62, deeper market indicators reveal a complex and potentially bearish underlying structure. This intricate dance between upward momentum and cautionary signals presents a challenging outlook for investors.
Market Dynamics: A Mixed Outlook
Despite recent bullish surges, the broader market structure for RIVER appears to lean bearish on the 1-day timeframe. Key indicators such as the Moving Average Convergence Divergence (MACD) have fallen below the zero line, signaling downward momentum, while the Chaikin Money Flow (CMF) registers an extremely low -0.36, highlighting significant capital outflows from the market. This divergence suggests that while short-term price movements might show strength, the fundamental capital flow and longer-term swing structure point towards a potential bearish continuation, with the $16.1 swing low already breached.
Key Levels and Cautionary Tales
Amidst these conflicting signals, traders are observing crucial price levels and liquidity zones. Imbalances on the 1-day timeframe at $26-$33 and $35-$40 are identified as potential supply zones that could be revisited, alongside liquidity clusters at $15, $25, $33, and $37.7. While these overhead zones could act as magnetic targets, particularly given RIVER's recent upward thrust, they also represent areas where selling pressure is likely to intensify. The asset's history of extreme volatility, including a 660% rally followed by a complete retracement within weeks, coupled with warnings of holders potentially selling into the current rally, underscores the high-risk nature of trading RIVER, urging extreme caution from market participants.
