Tezos price formed a God candle on Monday as investors cheered a new staking method. XTZ token surged to a high of $1.40, its highest level since April 1st and 157% from its lowest level this month, giving it a market cap of over $1.2 billion.
Tezos soars on Everstake staking news
Tezos, a popular layer 1 blockchain network, surged after Everstake introduced tez staking, giving investors up to 13.35 APR. Its staking is notable because it allows users to earn 2x more than delegation.
Tezos surge also came a week after Messari released an encouraging report on the network. Its report showed that there was a 46% increase in network activity in the network, with the number of transactions rising to 8.6 million. Most of this growth was because of the strong layer-1 and Etherlink adoption.
At the same time, the amount of XTZ tokens held by validators jumoed to a yearly high of 136 million tokens, a trend that could continue in the coming months. Tezos also continued to do well in the gaming industry.
XTZ price surge coincided with a sharp increase in open interest, which surged to $13.17 million, its highest level in over a year. It also happened as the shorts liquidations jumped to a record high of over $2 million.
The main challenge for Tezos is that its network has been passed by other newer blockchains like Base and Sui. Also, its investments in NFTs are not paying off as volume has remained significantly low. The volume of NFTs traded in Tezos in the last 30 days stood at just $242,000, according to CryptoSlam.
Also, data from its explorer shows that the number of active wallets in the last 12 months dropped by 6% to 325,000.
Tezos price analysis
XTZ chart by TradingView
The daily chart shows that the XTZ token price has staged a strong comeback in the past few days. This recovery happened after the coin formed a falling wedge chart pattern, a popular bullish sign.
The token has now soared above the 50-day and 200-day moving averages, signaling that bulls are in control. However, the coin has also become highly overbought, with the Relative Strength Index (RSI) moving to the overbought point at 81.
Therefore, there is a risk that Tezos price will have a mean reversion, where it drops and approaches its 50-day moving average of $0.80. In the longer term, more gains will become possible if the token surges above the intraday high of $1.40. If this happens, the next point to watch will be at $1.60, its highest point this year.
