The price has broken out from a long-term resistance.
Can RSR continue its increase toward new highs?
The RSR price has been increasing gradually since Aug. 5. The price surged on Dec. 3, increasing by 80% and reaching a new yearly high of $0.0184.
The RSR increase could have been aided by the rumors that one of its advisors, Paul Atkins, could be the next in line to head the Securities and Exchange Commission (SEC).
In addition to the positive news, the RSR price broke out from a long-term horizontal resistance area. If it maintains momentum, the price could increase another 160% until it reaches the next resistance. Let’s analyze the price movement and determine how likely this is.
The weekly time frame chart shows that RSR has increased since September 2023. The upward movement caused a breakout from a long-term descending resistance trend line that existed since the all-time high of 2021. This means the previous correction has ended, and RSR has started a new upward movement.
To confirm this further, the RSR price closed above the $0.0092 horizontal resistance area this week. If the upward movement continues, the next resistance will be at $0.0440, 160% above the current price.
Technical indicators support the upward movement. The Relative Strength Index (RSI) just crossed above 70, while the Moving Average Convergence/Divergence (MACD) has made a bullish cross and is positive.
So, weekly time frame readings suggest RSR will continue increasing toward the next long-term resistance.
In a previous AMA held in 2021, the community noted that Paul Atkins heads the legal team and was working on a contingency plan if RSR gets labeled a security, which, in the end, it was not. A medium post from 2019 also states that
Paul Atkins will likely be a key figure in guiding the Reserve team through the legal and regulatory landscape associated with the issuance of RSV and RSR.
The daily time frame chart shows that an ascending parallel channel contains the upward movement. The channel’s resistance trend line was previously touched on the March high, and the RSR price reached it again today (black icons).
Since there is minimal resistance above the current price, a breakout from this channel will likely accelerate the rate of increase toward new highs. The wave count suggests that RSR will break out.
The most likely count indicates that RSR is in wave three of a five-wave upward movement (white). The sub-wave count is in black.
If wave three is 1.61 times the length of wave one, the RSR price will reach a high of $0.0367, close to the previously outlined long-term horizontal resistance.
If wave three extends further, it can reach a high of $0.0576. While a breakout from the channel is likely, RSR could undergo a short-term correction as part of sub-wave four before breaking out.
Higher Prices Await
The long- and short-term RSR charts both give a bullish prediction. Positive RSR news regarding the nomination of Paul Atkins as SEC chair further fuels the positive sentiment.
The wave count suggests that RSR will break out from its channel and increase toward $0.0367.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
