I’m looking at the RSR/USDT 4-hour chart and noticed an Inverse Head and Shoulders pattern forming. First, there’s a clear left shoulder, followed by a deeper drop that created the head at the lowest point. After that, I can see the right shoulder shaping up, suggesting a possible bullish reversal could be on the horizon.
The key level I’m watching is the neckline, which is basically the horizontal resistance line connecting the tops of both shoulders. If the price breaks above this neckline on higher-than-usual trading volume, I’ll consider that a strong confirmation of the pattern and look for an upward move. My target for this move is around the 0.023–0.024 range (roughly a 60% gain from the breakout point), based on the classic Head and Shoulders measurement technique.
For risk management, I plan to use a relatively tight stop-loss just below the right shoulder level. This way, if the price fails to hold above the neckline and turns downward, I’ll be protected from a major loss. With this setup, the risk/reward ratio is quite attractive—over 12 to 1 in my estimation.
Of course, I’ll be watching overall market conditions as well, since larger market trends (like Bitcoin’s performance) can influence altcoins. None of this is financial advice, and I always recommend doing your own research and considering your risk tolerance before trading.