Rocket Pool price extends rally as Saturn One upgrade boosts sentiment

Rocket Pool (RPL) price extends its gains, trading above $2.80 at the time of writing on Tuesday after rallying over 58% in the previous day. The upcoming Saturn One network upgrade on Wednesday, which introduces key improvements to the RPL network, has fueled renewed buying interest. On the technical side, bullish momentum suggests the rally may not be over yet as investors assess the impact of the upgrade. 

Saturn One upgrade boosts sentiment

Rocket Pool announced that its Saturn One upgrade is scheduled for Wednesday at midnight UTC. This upgrade marks the most significant upgrade in the protocol’s history, introducing key improvements in scalability, capital efficiency and token economics. 

Rocket Pool’s X post highlighted that Saturn One brings a range of benefits, including an RPL fee switch, 4ETH validators, MEGAPOOLS, and rETH improvements.

According to the Medium post, this upgrade will enable the RPL fee switch. This transforms RPL from an inflation-reward token to an ETH accrual token. The more RPL staked in the protocol, the more ETH it captures. 

For rETH holders, the upgrade increases Rocket Pool’s capital efficiency, enabling the protocol to absorb much higher rETH demand. More node operators can join with less capital, creating more capacity for liquid stakers. In addition, the upgrade introduces 4 ETH MEGAPOOL validators. Node operators provide 4 ETH per validator, and the protocol allocates the remaining 28 ETH on behalf of rETH liquid stakers to total 32 ETH. Compared with minipools, this reduces investors’ bond requirement by half. With the same amount of ETH, investors can now run twice as many validators. This means higher commission for node operators and increased rETH minting capacity.

The network upgrade announcement has boosted investor sentiment, with Rocket Pool’s native token RPL surging more than 58% on Monday and trading at $2.80 as of Tuesday.

Rocket Pool Price Forecast: Bulls aiming for the $3.45 mark

Rocket Pool price rallied more than 58% on Monday, closing above the 100-day Exponential Moving Average (EMA) at $2.42 that day. As of writing on Tuesday, RPL is trading at $2.80.

If RPL continues its upward trend, it could extend the rally toward the 200-day EMA at $3.45.

The Relative Strength Index (RSI) on the daily chart reads 77, above the overbought conditions, indicating strong bullish momentum. Moreover, the Moving Average Convergence Divergence (MACD) showed a bullish crossover on Saturday, further supporting the positive outlook.

However, if RPL faces a correction, it could extend the decline toward the 100-day EMA at $2.42.