Parabola RIVER and RSI 90 — analysis of the critical point 🚀

The market leaves no doubt: the RIVER parabola has reached a zone that requires urgent analysis and decision-making. In just a few days, the price soared from 28.888 to 48.800 USDT, and the RSI(6) index on the daily chart is at 89.5 — a level that traders must decide on right now.

Price Movement: from 28.888 to 48.800 as a signal of parabolic growth

The parabolic ascent leaves no room for speculation. In a short period, RIVER has increased in value by over 68%, which in itself demonstrates the strength of the current trend. A daily gain of +8.21% shows that buyers are not stopping, and the monthly upward momentum can be called cosmic in scale.

Such a parabola always attracts two categories of traders: some are pleased with the size of the profit, while others are terrified of an impending correction. The question is, who is right at this stage.

RSI at 89.5 — an extreme or a continuation of the trend?

An RSI value of 89.5 falls into the category of historic overbought levels. On charts, this is rare, and most trading textbooks describe such levels as zones of either collapse or consolidation before an even stronger move. Classic analysis suggests the following: a strong parabolic trend can keep RSI above 85 for a long time without signaling a reversal. Cryptocurrency market history confirms this — many assets have shown RSI levels above 90 during their best times.

However, this does not mean safety. An extreme RSI is a warning that the margin of safety is minimal. One unexpected event, a burst of negative news, and the parabola could turn into a steep decline.

Critical levels and scenarios for the development of the parabolic movement

The psychological maximum of 48.800 acted as a resistance point. If this parabola breaks through this level, the next target areas are in the range of $55-60. Some optimists even talk about $100, arguing that parabolic movements in crypto often develop faster than traditional models suggest.

However, an alternative scenario is equally likely: a pullback of 30-50% from current levels, which would bring the price back into the 24-34 USDT zone. Such pullbacks have already occurred in RIVER’s history, and they always followed extreme RSI levels.

Three strategies at extreme RSI: from holding to taking profits

Traders are generally divided into three camps:

Hold for new highs. Supporters of this approach believe that the parabola has not yet exhausted its potential, and an RSI of 95 is not a verdict. They expect the trend to continue and hold positions aiming for target levels of $55-60 or higher.

Full profit-taking. Conservative traders see an RSI level of 90 as a signal to immediately realize gains. They take all profits and wait for a correction to re-enter at lower prices.

Partial profit-taking with trailing stop. The most flexible approach: take 50-70% of profits, leave the rest in the market with a trailing stop to catch possible continuation of the parabola, while protecting the main capital.

Risk management in extreme zones

The main rule: assets with RSI > 85 are in a high-risk zone where the parabola can turn either into a triumph or a loss. All experienced traders have a clear action plan before entering such zones: target price for taking profits, stop-loss level, position size.

Panic is born precisely when there is no plan. And panic often leads to worse decisions — either locking in losses at the bottom or missing profits at the top.

Key conclusion: RIVER’s parabola is at a crossroads. Each trader’s decision depends on their risk tolerance, position size, and experience in crypto markets. What would you choose? Justify in the comments — which strategy seems most reasonable to you given these RSI levels and the parabolic price movement?