XPL has dropped 33% from its all-time high, stabilizing near $1.08 as selling pressure eases.
Bears appear to be losing momentum, with the TD Sequential flashing a buy signal.
XPL could rebound toward $1.31, but failure to attract demand risks a decline.
The price of plasma (XPL) has dropped 33% from its two-day all-time high. At the time of this press, the cost is $1.08.
This development contradicts the broader market’s expectation, which was for the altcoin to continue trading higher.
Despite the decline, the XPL price does not seem to stay lower. Here is why.
XPL Selling Pressure Eases
On the 4-hour chart, XPL continues to trade inside a descending channel, but signs of stabilization are emerging. The token appears to have found a bottom near $1, where selling pressure is easing.
One reason for this pause is the Relative Strength Index (RSI) hovering close to the oversold region. This suggests the downtrend may be overextended, though buyers have yet to step in aggressively enough to spark a reversal.
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At the same time, bears are no longer pressing with the same intensity as before, hinting that downside momentum is weakening. If demand begins to return, this could set the stage for a potential rebound in relief.
By the look of things, sellers are showing signs of exhaustion. If buying pressure starts to build, XPL’s price could climb toward the $1.25 resistance in the short term.
Amid the recent drawdown, bullish chatter about XPL has picked up on X (formerly Twitter). CCN’s review of community sentiment shows that many traders believe the altcoin remains undervalued at current levels.
This growing conviction could help fuel demand, making it more likely that XPL’s price trades higher in the coming sessions. However, traders should also be cautious.
If the sentiment gets extremely bullish, it could hinder a notable breakout, and the price could move in the opposite direction.
XPL Price Prediction: Pullback to Peak
On the 1-hour chart, the Tom DeMark (TD) Sequential indicator has flashed a buy signal. This pattern appears at the end of a downtrend, signaling that selling pressure may be exhausted and a potential reversal could be on the horizon.
If validated, the TD setup could give buyers the confidence to step in, strengthening the case for an XPL’s price rebound from the $1 zone.
However, the cryptocurrency needs to break out above the resistance line to validate this pattern. Once that happens, XPL might test $1.31 at the 0.618 golden pocket ratio.
If successful, the next target for the altcoin could be a rise to $1.69. In a highly bullish scenario, XPL’s price could rise as high as $2.30 by year’s end.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
