ambcrypto.com
River [$RIVER] rallied to a high of $33.03 on Sunday, the 22nd of March. At that time, the move above the $24.2 high from mid-February was hailed as a bullish structure break. The short-term bias favored the buyers, though AMBCrypto warned of a possible pullback to the $11-$15 demand zone in case of a Bitcoin [BTC] setback.
This $RIVER retracement has come to pass. Since the previous Sunday, $RIVER has fallen from $33 to $17.8 at the time of writing, a 46% drop. The Bitcoin sell-off since Wednesday, the 25th of March, has also affected altcoin sentiment.
Now that the retracement to $15 has arrived, does $RIVER present a buying opportunity?
Is River’s retracement just a healthy setback?
In the past 24 hours, $RIVER has shed 15.88%. This was high volatility during a time when the tensions of war in West Asia remained high, and rising oil prices pushed investors to derisk their portfolios.
There were two positives for the $RIVER bulls to hold on to. First was the bullish structure break on the 1-day timeframe in mid-March (white). This move came alongside CMF values of over +0.05, indicating strong capital inflows.
The move had the potential to set up a sustained rally. The retracement after the structural break was playing out. The altcoin was trading within the Fibonacci golden pocket at $12.65-$17, and the $11.4 was a local support to keep an eye on.
As things stand, this is a buying opportunity. However, swing traders will be worried by the uncertainty in the global stock markets and the worsening energy crisis.
Traders can wait for these conditions before buying
The uncertainty around Bitcoin could see further $RIVER sell-offs despite the bullish 1-day structure. This could see the altcoin drop to $12.65 or $11.4, which were almost 30% lower.
At the same time, the $18-$20 former demand zone offered little resistance to the sellers in the past 24 hours of trading. This added to the risk of buying at current market prices.
Swing traders can look for entries at $11.4-$12.65 or wait for the $20 area to be flipped to support before buying. In these uncertain market conditions, flexibility and risk management are essential.
Final Summary
- River experienced high volatility over the past week and has retraced a good chunk of the gains made earlier in the month.
- This retracement was healthy for the price action structure and offered buyers a chance to re-enter the market.