Reserve Rights (RSR) Rallies 22% — Early Signs of a New Bullish Phase

Key Takeaways

• Breakout from a descending triangle signals bullish potential.
• Wave (iii) expansion expected, targeting 1.618 Fibonacci levels.
• Critical resistance is $0.0122, and major support is $0.0075.

Reserve Rights (RSR) has shown early signs of a potential bullish breakout after an extended correction.

The 4-hour chart highlights a multi-month descending triangle structure and an attempt to reclaim higher resistance zones.

Meanwhile, the 1-hour chart details a developing five-wave impulsive structure, hinting at further short-term upside.

RSR Price Analysis

The 4-hour chart shows RSR has spent the past few months correcting within a descending triangle structure, forming a complex WXY correction pattern.

The price peaked at $0.027 on Dec. 4, before experiencing a prolonged downturn, reaching lows near $0.0075 on Feb 3.

The completion of this correction coincides with key Fibonacci retracement levels, particularly the 0.786 level at $0.0082, which has acted as a strong support.

The 4-hour Relative Strength Index (RSI) has remained neutral, indicating a lack of bullish momentum.

However, since its Feb 18. we saw an increase that brought it to the 70% mark, touching the overbought level.

This coincides with the descending triangle resistance interaction, meaning a breakout wouldn’t likely happen immediately. 

The expected breakout also aligns with a broader Elliott Wave count, in which the corrective phase appears to conclude, and a fresh five-wave impulsive structure may unfold.

From a resistance standpoint, RSR faces immediate pressure at the 0.618 Fibonacci retracement level of $0.0122.

A decisive close above this level could confirm a trend reversal and open the door for further upside toward $0.0151 (0.5 Fibonacci retracement). 

On the downside, if the breakout fails, a retest of the $0.0075 support remains possible.

The RSI’s recent movement above 50 supports the bullish scenario but must sustain above this threshold to confirm strength.

RSR Price Prediction

In the 1-hour time frame, RSR appears to form a five-wave impulsive structure, supporting the larger breakout thesis.

Wave (i) saw a sharp upward movement, followed by a corrective wave (ii) that successfully retested lower support.

The current price action suggests that Wave (iii) is in progress, with Fibonacci extension targets pointing toward key resistance levels.

If Wave (iii) extends to the standard 1.618 Fibonacci level, RSR could reach $0.0122. Further extension toward the 2.0 level could push the price to $0.0133.

Given the breakout from the triangle structure, a short-term pullback in Wave (iv) may occur before the final push in Wave (v), which could take RSR above $0.0133.

The RSI on the 1-hour chart is approaching overbought conditions, suggesting the possibility of a short-term consolidation before further upward continuation.

If the price fails to hold the breakout level, a retest of $0.0082 (0.786 Fibonacci retracement) would be a critical support level to watch.

Overall, if momentum holds, RSR could continue expanding toward $0.0151.

However, dropping below $0.0075 would invalidate the bullish scenario, signaling further downside risk.

Key Levels to Watch

• Immediate Resistance: $0.0122 (0.618 Fibonacci retracement).
• Major Resistance: $0.0151 (0.5 Fibonacci retracement).
• Short-Term Target: $0.0133 (2.0 Fibonacci extension).
• Immediate Support: $0.0082 (0.786 Fibonacci retracement).
• Critical Support: $0.0075 (descending triangle retest level).
• Invalidation Level: Below $0.0075, signaling further downside potential.