XYO may be poised for a surge of up to 30% following the launch of its purpose-built Layer-1 blockchain and native utility token, XL1.
Summary
- XYO Network has launched its own Layer-1 blockchain, along with its native utility token, XL1.
- XL1 staking has been designed to reduce XYO’s total supply.
- While XL1 crashed over 50% less than a day after its launch, XYO price has gained more than 6%.
On Sep. 16, DePIN platform XYO Network announced the launch of its first Layer‑1 blockchain, purpose-built to handle data-heavy applications across sectors such as AI, logistics, and real-world assets (RWA).
Unlike general-purpose chains, XYO (XYO) Layer‑1 is built to offer verifiable and scalable data solutions for both enterprise and consumer use cases. XYO reportedly decided to build its own blockchain after finding that existing options could not meet its need for a high-efficiency network to handle large volumes of real-world data.
Apart from the launch of its Layer-1 network, the XYO team also revealed the launch of XL1, a utility token introduced to power the Layer‑1’s transactional functions. While the original XYO token remains active for governance and staking, XL1 will serve as the native currency for gas fees, smart contract execution, and on-chain rewards.
XL1 tokens are earned by staking XYO, a process that locks the original XYO tokens within the Layer 1 network. This mechanism is designed to reduce XYO’s active circulating supply over the long term, which in turn can support XYO’s upside potential.
Shortly after its launch, the XL1 token was listed on multiple centralized exchanges, including Kraken, KuCoin, Gate.io, MEXC, and CoinDCX.
The Token Generation Event established a total supply of 38 billion XL1 tokens, with an initial circulating supply of approximately 5.7 billion tokens, which remains unchanged at press time.
XL1 initially launched at a price of $0.0017 and surged to a high of $0.0032 within the first three hours, before crashing by over 51.5% over the course of the day, as early investors and airdrop recipients likely sold off their tokens to lock in profits, an occurrence quite common in the crypto space.
However, the original XYO Network (XYO) token, on the other hand, rose 6.5% over the past day, bringing its market cap to over $151 million at press time. Now, technicians suggest it may be looking at more gains, especially as recent developments have drawn in renewed interest from traders.
On the daily chart, XYO price had been forming lower highs and lower lows since it entered a downtrend in mid-July. It eventually broke out of the descending trendline after news of the launch of its Layer 1 network and its accompanying token.
When an asset’s price breaks out of a descending trendline, it usually indicates a shift in momentum from bears to bulls.
Another bullish case for XYO is that its price has flipped the 50-day simple moving average at $0.010 into support, a sign that short-term sentiment has turned more favorable.
On top of that, the Aroon Up shows a reading of 100%, while the Aroon Down remains at 28.57%. The metric indicates that bullish momentum is dominant, with the asset recently hitting new highs more frequently than lows.
Based on all these bullish technicals, XYO would likely continue its rally to test the $0.011 level, which aligns with the 23.6% Fibonacci retracement level. A break above this resistance could see the token rally toward $0.013, up nearly 30% from the current level.
However, a drop below the 50-day moving average would invalidate the setup and would likely lead to a bearish reversal.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
