As Bitcoin and Ethereum dip, Plasma (XPL) surges over 5% with a promising harmonic pattern. Could the token rise by 27% in the coming days? Traders are eyeing a crucial technical zone that might trigger a bullish move towards $0.49.
On the 4-hour chart of the XPL token. The pattern has gradually formed over recent weeks, with a point X at $0.4345, followed by a significant pullback to A, then a bounce to B before a correction down to point C at $0.3454.
This corrective phase laid the groundwork for the pattern. Since this point, Plasma has shown consistent progression, materializing the CD wave, a key stage that could drive the price toward the Potential Reversal Zone (PRZ) if the structure confirms.
The token is currently trading just below the 50-period moving average ($0.3779), considered short-term resistance. The 100-hour MA, located at $0.4087, constitutes the next technical obstacle. A confirmed break above these moving averages would signal the continuation of the CD wave and open the path to new bullish targets.
If buyers maintain control above the key moving averages, the harmonic pattern projects a target zone between $0.4611 and $0.4950, corresponding to the Fibonacci extensions of 1.272 and 1.618. These levels define the PRZ, where this type of pattern typically completes.
In practical terms, a rise to $0.4950 would offer a potential gain of 27% from current prices, a plausible scenario if bullish momentum intensifies and volume confirms the trend.
On the risk side, a break below the 50-hour MA could lead to a consolidation phase before any new impulse. The critical defensive zone remains around point C ($0.3454): Losing this support would invalidate the harmonic pattern and could trigger a short-term correction before a possible resumption.
The market is heating up for Plasma: This could propel XPL toward new highs.
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