A move that rattles investors: within hours, Plasma (XPL) surged by +25%, only to plummet by 20%. Extreme volatility sparking fears of a rug pull or market manipulation. Dive into the technical analysis beyond the panic for a nuanced perspective.
The Plasma (XPL) market has just experienced a remarkable bullish sequence with a 12% increase in just a few sessions. This momentum is primarily explained by a massive return of spot buyers, indicating renewed organic interest in the asset. Unlike phases of excessive speculation driven by leverage, this rise is built on more solid foundations.
On-chain data reveals progressive accumulation by long-term holders. Spot trading volume has increased significantly, exceeding derivatives volume on several major exchanges. This technical configuration suggests genuine investor conviction rather than a simple speculative pump.
Support levels are consolidating around $0.90, forming a robust technical base. If this support holds against current selling pressure, XPL could initiate a new bullish leg toward the key resistance zone at $1.37.
Despite the prevailing optimism, profit-taking signals are emerging on Plasma charts. Momentum indicators such as the RSI display values close to the overbought zone, traditionally associated with short-term corrections. Several significant wallets have begun liquidating positions, creating moderate downward pressure.
This profit-taking remains contained, however, and doesn’t challenge the overall bullish structure. The bid/ask ratio on order books still shows buyer dominance, particularly at lower price levels. Bulls appear to be using each dip as an additional accumulation opportunity.
The volatility of the crypto market demands heightened vigilance from traders. Intermediate supports around $1.15 and $1.12 constitute critical zones to monitor. A break below these levels could trigger a wave of stop-losses and accelerate the correction.
Technical analysts are now plotting a bullish scenario toward $1.37, a level corresponding to the 1.618 Fibonacci retracement of the latest corrective wave. This target represents additional upside potential of approximately 15% from current prices. Breaking through the resistance at $1.30 is an essential prerequisite to validate this scenario.
Plasma’s technological fundamentals continue to attract institutional investors’ attention. The network displays solid performance metrics with a steady increase in daily transactions. This growing adoption strengthens the long-term investment thesis beyond purely speculative considerations.
The global macroeconomic context also plays a decisive role. XPL’s correlation with Bitcoin movements remains high, exposing the asset to fluctuations in the broader crypto market. Savvy traders adjust their risk management accordingly, favoring progressive position-taking rather than massive entries.
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