The altcoin River (RIVER) has seen a 15% price increase in 24 hours, pushing its market capitalization back above the $140 million mark. This breakout follows a month of sideways trading that occurred after the token hit a year-to-date low of $4.33.

An altcoin season surge following the $4.33 low

The recent price action for River (RIVER) coincides with a broader shift in the cyrpto market, as the altcoin season index has climbed back above the 40 mark. This index is a key indicator for traders looking to identify when capital is rotating out of Bitcoin and into smaller-cap assets.

This movement follows a period of intense consolidation. After the token suffered a sharp decline to a year-to-date low of $4.33, it spent much of the last month ranging within a narrow band. The recent breach of this month-long resistance suggests that the period of accumulation may be concluding.

The $7.20 to $7.50 short squeeze fueling the breakout

The primary catalyst for this sudden upward momentum was a concentrated short squeeze. According to the report, a cluster of short positions located between $7.20 and $7.50 was liquidated, which rapidly accelerated the price toward a daily peak of $7.77.

Technical indicators suggest that despite the rejection at the $7.77 level, buying interest remains present. The Cumulative Volume Delta (CVD) was recorded at 10.77K, indicating that more than 10,000 RIVER tokens were bought during the period. additionally, the MACD bars remained green, providing a technical signal that buyers were still active in the market.

A 274% spike in sales as traders lock in profits

While the price rally has been significant, the data also reveals a sharp increase in selling activity. The report notes that sell volume reached $6,633, representing a rise of more than 112%. More tellingly, the number of individual sales increased by 274%, suggesting that many traders are using this breakout to lock in realized profits.

Will the 20,189 token deposit trigger a deeper correction?

The sustainability of River's rally remains an open question, particularly as the source provides a purely technical perspective without addressing the fundamental news that might be driving the volume. While there are approximately 3,700 holders on the Ethereum network according to Token Terminal, it is unclear if this group is expanding or merely rotating.

Furthermore, Nansen AI data shows that more than 20,189 RIVER tokens were deposited into exchanges, a 4.14% increase. It remains unverifeid whether this influx of tokens is intended for further selling or if it represents a different type of liquidity movement. For the bullish case to remain intact, the token must hold its current position above the $7 support level.