Reserve Rights (RSR) price defied gravity this week as it became one of the best-performers in the crypto industry. The token surged to a high of $0.0096 on Friday morning, its highest point since 2022. This rebound happened as most cryptocurrencies, including Bitcoin, Ethereum, and Ripple pulled back.
Why is Reserve Rights Token soaring?
Reserve Rights is a blockchain project that aims to create a stable currency that is inflation-proof. The Reserve Protocol enables people to create RTokens, which are assets that are launched on the ecosystem.
Anyone can create an RToken by just depositing collateral using the blockchain technology. These tokens are usually redeemable 1:1 for the assets that back them. Most importantly, they are designed to be overcollateralized, meaning that if any of the collateral tokens default, there is a pool of value to preserve the value of the RToken holders.
It is unclear why the Reserve Rights Token price surged even as other cryptocurrencies dived. A likely reason is that investors cheered the decision by Blackrock to launch a tokenization fund on Ethereum.
The Blackrock USD Institutional Digital Liquidity Fund has a ticker of BUIDL token that is backed by cash and Treasuries. In a statement, the company’s head of digital assets said:
“We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize.”
Blackrock joins other big companies that have embraced tokenization. Companies like Franklin Templeton, JPMorgan, London Stock Exchange, and Citi have all launched tokenization products in the past few months.
Blackrock’s entry into the industry is a sign that there is a strong demand for tokenized assets. It is also notable because of the size of the company, which has over $10 trillion in assets under management.
It is also a validation for Reserve Rights, a blockchain company that has been in the industry for a while now.
Reserve Rights Token price forecast
The daily chart shows that the RSR token price has gone vertical in the past few days. It has remained above the crucial Supertrend indicator. The coin also jumped above the important resistance point at $0.0080, its highest swing on March 14th.
Reserve Rights has moved much higher above the 50-day and 100-day moving averages. The Relative Strength Index (RSI) and the Stochastic Oscillator have all tilted upwards. Therefore, I suspect that the token will pull back slightly and then resume the bullish trend. If this happens, it will likely retest the support at $0.0080 as profit-taking continues.
