RIVER in the parabola: RSI 90 — an extremely overbought signal

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RIVER demonstrates a classic parabola: the price surged from 28.888 to 48.800 USDT in just a few weeks, and the monthly growth is simply astronomical. But the main attention is drawn to the technical signal — RSI(6) on the daily chart is fixed at 89.5, entering the extreme overbought zone. This is the moment when the market stands at a crossroads: either the parabola will continue to accelerate, or a correction will occur.

Technical parabola reaches a critical point

When an asset makes such a rapid rise, a classic parabola is formed — an exponential curve that at some point loses the ability to grow at the same pace. RIVER has followed exactly this path:

  • Starting point: 28.888 USDT (a month ago)
  • Current price: 47.985 USDT
  • Daily increase: +8.21%
  • Key resistance level: 48.800 USDT

RSI 89.5 is not just a high value; it’s a historic overbought level. The indicator rarely reaches such levels. Breaking above 48.800 will open the way to $55-60, but the probability of a pullback increases with each new maximum.

Three strategies when RSI > 85: risk and reward analysis

Traders face a classic dilemma. What to do when the parabola is still heating up?

Option 1: HODL until the peak 🟢 Logic: RSI can be 95 — the main thing is that the trend is undeniably strong. If the parabola continues, a target of $100+ is quite realistic. Risk: missing the top and losing all accumulated profit.

Option 2: Fully take profits 🔴 Logic: RSI 90 is a critical warning. History shows that such levels often turn the market down by 30-50%. Wait for a pullback and re-enter at a more favorable price. Risk: missing an additional 20-30% growth.

Option 3: Partial exit 🟡 Logic: The middle ground. Take 50-70% of the profit, let the rest run with a trailing stop. This way, we secure part of the gains but leave room for further growth.

Risk management: a critical rule for all players

⚠️ An asset in the RSI > 85 zone is a high-risk bet. At this level, a single impulsive move or news can crash the position. Every trader must clearly define their plan BEFORE panic begins:

  • Set a precise stop-loss level
  • Decide in advance what percentage of profit to lock in
  • Do not increase the position in extreme RSI zones
  • Remember: a parabola always ends, the only question is when

RIVER is at a critical point. Bulls believe in the continuation of the parabola to $100+, bears prepare for a correction to the 30-40% range. Everyone must honestly ask themselves: am I ready to hold until the end or prefer to lock in profits? The answer should be prepared in advance while a cool head can still make decisions.

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