River [$RIVER], which is a chain-abstraction stablecoin system, crashed more than 19% in the past 24 hours.

This meant the altcoin underwent a full retracement of the 19% upward rally that happened three days ago. What drove this decline, and is $RIVERshowing signs of reversal?

Why is the $RIVERprice declining?

First, the decline was fueled by the selling pressure, as the 52% spike in daily volume indicated. When prices drop with increasing trading volumes, it suggests selling potentially for profit-taking following the rally seen mid-week.

The Total Value Locked (TVL) declined from $123 million to $91 million, resulting in more than $30 million in capital lost. The chart showed that the TVL had been bouncing between these levels since the 6th of February.

Moreover, the total USD Inflows were negative during the day with a reading of $79K. This indicated that traders were withdrawing their capital from the altcoin.

Furthermore, the community’s bullish sentiment was declining, with bear odds rising to 38% from below 20%.

This indicated traders were gradually losing confidence in an uptrend, especially since $RIVERhad dropped from an all-time high of $88. This was more than a 10x decrease in three months only.

Still, this price decline could be a blessing in disguise for the optimistic traders if history repeats itself.

Can bulls pull another 245% move?

Currently, $RIVERis trading at a key support level, which resulted in a move of more than 245%. Then, the $RIVERprice rose from around $8 to levels above $30 in one month.

Before dropping to this $8 zone, $RIVERconsolidated for more than a week between $10 and $13 price levels. The breakdown candle was met with instant rejection, indicating that bulls were alert to this level.

Looking at the Cumulative Volume Delta (CVD), the reading was negative at 248K. This indicated selling pressure, though it had dropped from a daily peak CVD of 2.06 million.

Interestingly, the reading of the Long/Short Ratio for Accounts was at 2, meaning bulls were buying $RIVERcrypto. This suggested that now could be an opportune time to buy. However, this buying was in the Binance Futures market, while the Spot market was quiet.

With that in mind, River crypto’s bulls could be aiming to rerun another 245% rally. Such a move would take the altcoin past $30. However, this would be true if the altcoin broke above the top of the range at $13.

Final Summary

• $RIVERprice crashed about 19% amid USD outflows, TVL decline, and profit-taking.
• $RIVERcan only rally past $30 if bulls can break and stay above $13 for an extended period.

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