Key Insights
What drove the recovery of Plasma [XPL]?
The Buy Volume surged to 506.9 million tokens while the exchange Netflow decreased to -$19.35 million, indicating accumulation.
Is the upward trend sustainable?
Strong on-chain activity and a DMI reading of 26 suggest strength, but Stochastic RSI signals short-term volatility.
Plasma [XPL] experienced a rebound after dropping to a low of $0.86 and reclaimed the $1 resistance level as predicted earlier by AMBCrypto.
Currently, XPL is trading at $0.99, slightly below the intraday high of $1.07, representing a 12.22% increase in 24 hours.
Trading volume has increased by 70% to $4.2 billion, indicating strong capital rotation. With growing Spot and on-chain demand, XPL seems poised for another rally after a brief consolidation phase.
What fueled the recovery of XPL?
Spot demand boosts XPL’s momentum
As highlighted by AMBCrypto, Plasma witnessed significant demand from the Spot market, driving the altcoin’s recovery.
Data from Coinalyze revealed a Buy Volume of 506.9 million tokens compared to 497.13 million Sell Volume, resulting in a positive Buy/Sell Delta of 9.77 million — a clear indication of bullish spot activity.
Source: Coinalyze
Additionally, CoinGlass data confirmed three consecutive days of negative Spot Netflow.
Source: CoinGlass
Currently, the Netflow stands at -$19.35 million, indicating increased outflow, a strong sign of aggressive accumulation.
Historically, a decrease in exchange supply has preceded low selling pressure, leading to higher prices for an asset.
Network activity demonstrates renewed vigor
In addition to Spot demand, Plasma’s on-chain network usage has seen a significant surge.
According to Dune Analytics, Daily Active Users have rebounded from 5.4k to 9.6k, indicating robust network usage.
Simultaneously, Cumulative Transactions have reached 31 million, further confirming the network’s demand.
Source: Dune
Interestingly, this on-chain demand is particularly evident when looking at Stablecoin transfers.
According to Artemis, the Number of Stablecoin Transactions has surged to 1.2 million, with Addresses reaching 34.7k.
Source: Artemis
Furthermore, the Adjusted Transaction Volume has reached $43.9 billion, with USDT leading with a daily volume of $3.4 billion.
This level of activity typically enhances liquidity and developer participation, creating a positive feedback loop that sustains price momentum over time.
Can XPL maintain its upward trajectory?
AMBCrypto’s analysis indicates that Plasma’s recovery aligns with both demand and network strength.
As a result, the altcoin’s upward momentum has strengthened, with the Directional Movement Index (DMI) rising to 26 on 4-hour charts.
However, the Stochastic RSI has dropped to 78 after a downside crossover, suggesting potential short-term volatility.
Source: TradingView
Currently, XPL is trading within an ascending channel, indicating a stable and controlled uptrend with buyers dominating the market while sellers capitalize on profits.
If the aforementioned conditions persist, XPL could revisit the upper boundary near $1.07 and potentially target $1.37. However, if profit-taking intensifies, the token may retrace towards the $0.86 support level.
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