Reserve Rights (RSR) has experienced a remarkable surge of 52% in price within just 24 hours. While this may seem impressive, it is unlikely to have a lasting impact. The cryptocurrency still has a long way to go before reaching its all-time high, and the current rally is likely to be short-lived.
One factor that suggests the rally may be unsustainable is the overvaluation of RSR. The Market Value to Realized Value (MVRV) Z-Score, which measures the ratio of market cap to realized value, indicates that the asset is currently overvalued. Historical data has shown that when an asset has a high positive MVRV Z-Score, corrections in price tend to follow.
Additionally, investor sentiment towards RSR has been declining, even during the rally. This pessimism among investors is likely to result in a decline in price over the next few days.
Based on the current trends, there is a possibility of a 20% correction in RSR price. If the altcoin falls below the support level of $0.007302, it could potentially drop even further to $0.006500. However, if RSR manages to bounce off this level and reclaim $0.008000, it could invalidate the bearish thesis.
In conclusion, while the recent surge in Reserve Rights price is noteworthy, it is unlikely to have a sustainable impact. The overvaluation of the asset and declining investor sentiment suggest that the rally may be short-lived.