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River (RIVER) has gained renewed interest from investors as most gains in the cryptocurrency market remain in the 4% to 6% range, while it gained 11% in the past day.
This move came at a critical moment. The recent shift in public sentiment about RIVER towards neutral territory reflects a market marked by instability and indecision.
Despite the recent rally, the outlook has not turned completely bullish as some investors continue to take positions for a potential decline.
Capital inflows trigger price increases
The recent price increase is largely due to increased capital inflows into the ever-increasing Futures market, where traders have begun to allocate more funds. RIVER contracts with the expectation of an increase.
Data from CoinGlass It shows that RIVER’s Open Interest, which tracks the total value of active perpetual contracts, increased by $31 million in the last day, reaching $196 million at the time of writing.
This 16% increase generally reflects increased confidence in the direction investors expect the market to move. In this case the signal was in an upward trend. In early trading on Saturday, the OI Weighted Funding Rate remained at 0.0442%, confirming that most leveraged investors were positioned on the long side.
For context, the OI-weighted funding rate measures where the majority of capital is positioned in permanent contracts.
The ratio turning positive indicates that investors holding long positions are paying funding fees to short positions, which reflects the bullish position. A negative reading, on the other hand, indicates that bearish positions prevail.
Growing downward trend brings risk
Despite the capital inflow, not all investors share the bullish outlook. Some traders began increasing short positions, creating additional downside risk.
According to incoming data CoinGlassThe long-short ratio on major exchanges is the same for investors on both exchanges. Binance And OKX It is currently trending downward as sales volume continues to increase.
This ratio measures the balance between long and short positions. A reading below 1 indicates that selling volume is prevailing, while a reading above 1 indicates a stronger uptrend.
At the time of writing, Binance recorded a long-short ratio of 0.56, while OKX reported an even lower ratio of 0.36.
Both readings remain well below the neutral threshold of 1, underlining the increasing presence of a bearish sentiment.
Additionally, Binance currently dominates RIVER trading activity with approximately $431 million in volume, while OKX follows with approximately $387.62 million, giving both platforms a significant impact on short-term price direction.
These exchanges also control a significant portion of the RIVER perpetual Open Interest. Binance has approximately $57.23 million and OKX has $23.83 million. Due to this concentration of capital, traders operating on these platforms can greatly influence the short-term price trajectory of the asset.
Buyers traditionally appear to be in bearish territory
The Accumulation/Distribution (A/D) indicator shows that buyers are starting to enter the market, even in what has historically been a bearish zone.
Since March 9, the indicator has shown a noticeable shift towards accumulation. During this period, the A/D metric increased from -24.11 million RIVER to -22.58 million RIVER; This shows that buying pressure has recently exceeded selling pressure.
This development supports the idea that the short-term trend is upward. However, caution still needs to be exercised.
Although the indicator has improved, it is still trading in negative territory overall, meaning that the market has not fully overcome the selling pressure that prevailed in the previous weeks. As a result, although buyers have started to step in, the overall structure still reflects the ongoing bearish trend.
Final Summary
- RIVER is recovering as capital inflow continues to increase significantly in the market.
- Trading volume suggests that Binance and OKX investors are remaining cautious, leaving room for further downside risk.
