Here’s why RSR could increase by 30%.

• Reserve rights price breaks the downtrend line, signals a bullish move ahead.
• On-chain data shows that RSR’s open interest is increasing, indicating an influx of new money.
• A daily candle close below $0.0038 would invalidate the bullish thesis.

The price of reserve rights (RSR) is breaking the downtrend line and trading up 3.6% on Wednesday. On-chain data shows that RSR open interest is rising, indicating an influx of new money and an increase in RSR prices in the coming days.

The Reserve Rights price shows the potential for a rally after breaking the downtrend line

The price of the reserve rights breaks the downtrend line drawn by joining several March 26 swing highs. At the time of writing, it is trading up 3.6% at $0.0054 on Wednesday.

If RSR breaks the downtrend line and closes above daily resistance at $0.0058, it could rally 33% to retest the June 12 high of $0.0078.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are trading above their neutral levels of 50 and zero, respectively. These momentum indicators strongly indicate bullish dominance.

RSR/USDT Daily Chart

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP), nearly 318 addresses have accumulated 1.16 billion RSR tokens at an average price of $0.0053. These addresses bought the RSR token between $0.0052 and $0.0053, making it a key support area.

Interestingly, the mentioned area from a technical analysis perspective, the $0.0053 level, coincides with the IOMAP findings, making this area a key reversal area to watch.

RSR IOMAP diagram

Data from CoinGlass shows that futures open interest (OI) in reserve rights on exchanges is also growing. OI indicates the total number of outstanding derivative contracts that have not been settled (settled by delivery) and whether the cash flows in the contract are increasing or decreasing.

OI growth represents new or additional money entering the market and new purchases, suggesting an optimistic trend. When OI falls, it is usually a sign that the market is liquidating, more investors are leaving and the current price trend is ending.

The chart below shows that RSR’s OI increased from $10.81M on Tuesday to $12.88M on Wednesday, indicating that new or additional money is entering the market and new purchases are taking place.

RSR Open Interest chart

Despite the bullish thesis signaled by both on-chain data and technical analysis, the outlook will change to the downside if Reserve Rights’ daily candle closes below $0.0038. This scenario could lead to a 20% crash to retest its low of $0.0030 on August 5.