XPL Sees a 14% Drop Following Recent Surge: What Lies Ahead for Plasma?
After a notable increase, Plasma's XPL token has retreated by 14% to a pivotal support level of $0.75. Market indicators suggest potential shifts ahead.
Plasma (XPL) has seen a significant decline following a recent high. The token is currently priced at approximately $0.75, which marks a decrease of 14% within the last 24 hours and 23% over the week.
The downturn follows a brief spike that pushed XPL to $1.07 over the past week.
Price Revisits Support Area
The price has returned to a support zone ranging from $0.74 to $0.78, where earlier consolidations and a rising trend line meet. This area served as a foundation for the previous upward movement. The 0/8 Murrey Math Line at $0.78 coincides with this region, indicating it remains a point of significant interest.
Source: TradingView
The Relative Strength Index (RSI) on the 4-hour chart has now dipped to around 30, indicating oversold conditions. There are early signs of a potential reversal, yet no definitive confirmation exists as of now. Should the trend line and support level hold, we may observe buyer activity stepping back in. However, if these levels do not sustain, lower valuations around $0.68 and $0.59 might be seen.
Futures Open Interest Sustains Above $1B
Current futures Open Interest for XPL remains at about $1.09 billion, showing a substantial rise from below $300 million back in late August. This increase began in late September when XPL’s price approached $1.6, with Open Interest peaking during that rally, suggesting robust trading involved.
Source: Coinglass
Even as both price and Open Interest have moderated from their peaks, the current figures demonstrate active trading, marking the potential for continued volatility in the near term.
Analyst Observes Market Settling on Fair Value
Crypto analyst Duo Nine recently shared insights on XPL’s actions. He noted:
“At $1.70 insiders started to unload… market maker support at $0.85 failed under pressure.”
He emphasized that with the initial pump phase concluded, the market is now determining the true value of XPL.
Data indicates that XPL reached an all-time high of $1.68 on September 28, with a low of $0.72 shortly before. Given that the current price tests this critical range, traders are closely monitoring to see if support holds or if the downward trend continues.
