RedStone token continued rising on Saturday, continuing a trend that happened when it bottomed at $0.4195 earlier this month.
RedStone (RED) price rose to a high of $0.7545, its highest level since March 7. It has jumped by almost 80% from its lowest level this month, giving it a market cap of over $204 million.
RED token rose after the developers launched the DRILL program, which will see about 4.5% of total supply distributed to core users and reward early adopters. This program will create value through key strategic pillars like develop, reinforce, innovate, launch, and learn.
15% of these tokens will go to developers in the ecosystem, while 60% of the allocation will focus on securing the network. These funds will be deployed into the Eigen staking vault and will serve as an insurance payout in case of a documented price feed malfunction.
20% of the DRILL allocation will go to developers using its newer products like the Oracle Extractable Value or AI tools. 5% of the funds will go to new DeFi apps, while the rest will go to developers creating educational tools in the network.
RED price also rose after the developers partnered with EIGEN to facilitate liquid staking if the token. RED stakers can convert their tokens into mRED, allowing them to secure the RedStone AVS on EigenLayer while retaining liquidity in the network.
RedStone has quickly scaled the oracles ladder in the past few months. According to DeFi Llama, it has become the fourth-biggest player in the oracle industry after Chainlink, Pyth, and Chronicle with a total value secured of $4.9 billion. It secures networks like Spark, Cygnus Restake, Resolv, and Euler.
RedStone price analysis
The hourly chart shows that the RED token bottomed at $0.4188 on March 11 and then bounced back to a high of $0.7543. It moved above the 50% Fibonacci Retracement level at $0.688.
RED has crossed the important resistance level at $0.6817, its highest swing on March 12. It was the upper side of the cup and handle pattern, a popular continuation sign.
It has also moved above the 50-day moving average. Therefore, it will likely keep rising as bulls target the next key resistance point at $0.8432, which is about 20% above the current level.
