River [RIVER] is up more than 15% in the past 24 hours as its market capitalization returns above $140 million. This surge came as the altcoin season index also rose back above the 40 mark.
RIVER breaches month-long resistance
The price charts show that RIVER has been ranging over the past month but has finally broken out. The sideways range came immediately after the price sharply dropped to a year-to-date low of $4.33.
After breaching the month-long resistance, RIVER rose to a day’s peak of $7.77. However, the altcoin is facing resistance around this level. The level was responsible for the breakdown leading to this year’s low.
Despite facing rejection, the MACD bars remained green, indicating buyers are still present. This is confirmed by the Cumulative Volume Delta (CVD), which is at 10.77K. This means more than 10K RIVER tokens were bought at the time of writing.
As of press time, RIVER traded toward the breakout level at $7. Only holding above it would help keep up the buying momentum.
Otherwise, the altcoin may drop to the range or lower. Such a move would invalidate the current bullish scenario.
Short liquidations fuel RIVER’s price rally
Worth noting, the liquidation of clusters of short positions around $7 fueled this breakout. A short squeeze of orders between the $7.20 and $7.50 further accelerated the uptrend.
However, as the price declined from $7.70, clusters of long orders were forming below the range’s resistance. Millions of USD worth of RIVER longs were sitting between $6.79 and $7.
Meanwhile, token holders on Ethereum [ETH] were growing but have been flat since early April. As per Token Terminal, there were a total of 3.7K holders on the ETH network.
Sellers start to outpace buyers
The rally still faces resistance as sellers have started to dominate buyers. Sell Volume of $6,633 had increased by more than 112%. The Buy Volume was higher, at $6,645, but the rate change was declining, at 86%.
Similarly, the number of sales caught up with buys and was at par. Sales increased by 274%, suggesting traders were locking in profits.
An increase in the exchange balance confirmed these selling activities. More than 20,189 RIVER tokens were deposited, a rise of 4.14% during the days, as per Nansen AI.
Altogether, the data showed the altcoin would remain bullish unless it failed to hold above $7. The selling activity suggested that a potential correction was next, but it was uncertain to what extent it would be.
Final Summary
- RIVER rose more than 15% after breaking out of a monthlong sideways consolidation.
- RIVER’s rally was driven by the liquidation of shorts, but on-chain activity showed that traders began locking in profits.