The lesser-known altcoin RIVER has defied the ongoing bear market, with its price spiking by double digits over the past seven days.
Some analysts expect the rally to continue, while others view the project as a red flag and warn investors to stay away.
How Much More?
RIVER is among the best-performing top 100 cryptocurrencies in the last week, jumping by 50% and currently trading at around $26 (per CoinGecko’s data). At one point, its market capitalization neared $550 million, whereas as of this writing, it stands at around $500 million.
One factor that may have contributed to the rally is the recent partnership between DIA and River, which is intended to provide the former’s omnichain stablecoin system with accurate, trustworthy price data.
The coin’s pump caught the eye of many analysts, including the popular Ali Martinez. Earlier this month, he claimed that RIVER “is looking bullish” since it has formed an “inverse head-and-shoulders” pattern and predicted that a pump above $20 could open the door to $57. Later on, Martinez confirmed the breakout, setting anything in the $45-$57 range as potential targets.
Kamran Asghar chipped in when RIVER was testing the “critical resistance zone” around $23. Back then, he argued that turning this into support could result in a “clear run” toward $40 and beyond.
Major Red Flags?
Despite the impressive price increase, others remain quite skeptical toward the cryptocurrency. X user Julius Elum noted that RIVER “looks good in the chart,” but claimed that it might be a “manipulatable token” by whales. In his view, entry between $10 and $15 is safe, hopping on the bandwagon at around $20 is risky, while the current levels represent FOMO.
“It might be a planned liquidity grab. I don’t chase setups if it has formed this obvious conviction. Because most times, it’s a trap. I’d rather take entry when the conviction is still in the doubt stage. But if I must risk it, I will do so with caution,” the analyst concluded.
X user Nehal also sounded the alarm. They believe that there are major red flags surrounding RIVER, suggesting that investors should be aware of more than just a pump-and-dump volatility. The analyst went even further, stating that many traders have reported losing money because the price has moved against their positions. In a subsequent post on March 18, Nehal forecasted that RIVER could plummet below $5 soon.
Highlighting the risks related to the token is nothing new. Earlier this year, X user Erik said 94% of RIVER’s total supply is held by only five wallets, whereas Honey argued that the project resembles previous rug pull schemes.
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