RIVER and parabola: when RSI enters the extreme 🚀

The current RIVER price is 47.985 USDT with a daily increase of +8.21%, continuing an impressive monthly ascent. However, the main event is happening in the realm of technical indicators: RSI(6) on the daily chart reaches an extreme value of 89.5. This is a critical point where the market stands at a crossroads between continuing the rally and a sharp correction.

What is a parabola in technical analysis

A parabola is not just a beautiful geometric term. In trading context, it describes a price trajectory that accelerates faster and faster, like an increasing flight. RIVER demonstrates a classic parabola: the price jumped from 28.888 to 48.800 in a relatively short period. Each new day adds more momentum, attracting new participants and fueling demand. But here lies the danger: a parabola, no matter how rapid it seems, has physical limits.

RIVER: the history of parabolic movement

Breaking through the key level of 48.800 (psychological maximum) opens a potential path to zones $55-60. This sounds enticing, and many traders believe that the parabola has not yet reached its peak. The monthly growth base is indeed impressive, and the technical trend remains bullish. However, the RSI value of 89.5 is a historical sign of overbought conditions that cannot be ignored even by optimistic market participants.

RSI 89.5 and the psychology of the extreme

When RSI exceeds 85, the market enters a zone of maximum vulnerability. This does not mean an automatic collapse, but it signals that demand is almost fully exhausted by current participants, and further growth requires increasingly larger amounts of money. The parabola can continue to $100 and above, but each new level demands exponentially more buying volume. Psychology plays a key role here: one skeptical phrase from an analyst, one large sell — and the price can sharply reverse.

Three strategies in the parabola risk zone

Every trader should choose their approach before volatility begins:

1. Believe in continuation. If you are convinced that the parabola is developing organically and the trend is stronger than extreme RSI values, then HODL remains your strategy. Historical overbought conditions do not always mean a top — sometimes it’s just a pause before a new surge.

2. Lock in profits. An unconditional exit from the position at RSI > 90 is a classic conservative approach. You take the profits already earned, exit the parabola, and wait for a natural correction of 30-50% to re-enter at a more favorable price.

3. Partial lock-in. The golden middle: take 50-70% of profits, leave the rest with a trailing stop. This way, you protect the main part of your gains but leave room to participate in further parabolic growth.

The golden rule: plan before panic

An asset with RSI > 85 is not Russian roulette if you have a well-thought-out action plan. The RIVER parabola at the critical extreme requires maximum clarity of mind. Decide on your exit point in advance, set stop levels, and do not let emotions rewrite your plan. The market will show who was right — those who believed in unlimited flight, or those who preferred guaranteed profit. The choice remains with each trader.