The Root Network token was one of the best performers in the crypto market on Tuesday as it surged to its highest point since March 23.
Root (ROOT) rallied for three consecutive days, reaching a high of $0.0096, up 175% from its lowest point this month. The rally followed the launch of staking by the project’s developers, allowing users to earn Vortex tokens on the network. These tokens can be redeemed for either the ROOT token or Ripple (XRP).
The staking launch has attracted more users to the network. Santiment data shows that the number of daily active addresses surged to a record high of 801 on Tuesday, well above the previous peak of 400 in February.
The Root Network also experienced a wave of fear of missing out, as the total number of holders climbed to nearly 10,000, up from 8,830 in January. It’s common for retail traders to pile into a surging token, expecting the rally to continue.
Whales also joined the buying frenzy, with the total supply held by these large investors increasing to 11.9 billion tokens, up from 10 billion last week.
Root Network is a layer-1 blockchain focused on gaming and the metaverse. It has attracted developers and forged notable partnerships, including Ripple, Warner Bros, Reebok, and Tencent. Some of the most popular games in the ecosystem include Reebok Impact, The Third Kingdom, and OPEN.
Root Network price analysis
The eight-hour chart shows that ROOT bottomed at $0.0034 on Sunday before going parabolic and hitting its highest level since March. This rebound followed the formation of a falling wedge pattern, consisting of two descending and converging trendlines.
The Relative Strength Index has jumped to an extremely overbought level of 85. Therefore, while the rally may continue, there is a strong likelihood of a pullback, possibly retesting the upper side of the wedge at $0.0043 as investors take profits.
