Reserve Rights (RSR) came out of a two-month uptrend. It could potentially hit $0.01 after an initial pullback.
Despite the continued market correction that began on Tuesday, RSR went against market moves and managed to create a bullish engulfing candle.
The candle also served to validate (green icon) the resistance line of the previous bearish wedge, from which the price was broken on September 23rd.
The daily RSI also legitimizes the breakout as it broke above 50 and continues to rise. If the bullish move continues, the nearest resistance zone is at $0.01.
The price did not break above the June 7 high (red icon) and has not closed above since May.
Therefore, despite the breakout, a recovery from the $0.01 area is needed for the bullish reversal to be confirmed.
Short-term weakness could lead to a pullback
Despite the daily breakout and uptrend, the 4-hour chart shows considerable weakness in the form of a bearish divergence on the RSI (green line) and several long upper wicks, which are seen as signs of selling pressure. .
Additionally, the move over the past five days has had significant overlap, suggesting that it is corrective.
On a pullback, the main support zone would be between $0.007 and $0.0074, created by the 0.382 to 0.5 Fibonacci retracement support levels.
Once that is reached, RSR could create a higher low and potentially resume its rise towards $0.01.
More obvious performance in the RSR/BTC pair
The extent of the outperformance relative to the market is best seen when looking at the RSR/BTC pair. Price created a huge bullish engulfing candle on September 19, validating the previous break of a descending resistance line.
The rise was also coupled with an RSI move above 50 (green icon), further increasing its legitimacy.
If the upward move continues, the next closest resistance area would be at 64 satoshis. As it stands, a push in this area is the likeliest possibility.
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