XPL Drops 14% Post-Pump: What’s Next for Plasma?

XPL falls 14% in 24 hours and returns to the key support at $0.75, while the RSI becomes oversold and the Open Interest remains above $1 billion.

Plasma (XPL) has seen a sharp decline after the recent rally. The token now has a price of around $0.75, reflecting a decline of 14% in the past 24 hours and 23% in the past week.

This move follows a brief boost that took the price to $1.07 in the last seven days.

Price back into the support area

Meanwhile, the price has returned to a support range between $0.74 and $0.78, where previous consolidation and an ascending trendline meet. This area acted as the base for the final upward movement. The 0/8 Murrey Math Line at $0.78 also aligns with this zone, suggesting that this remains an interesting level.

The Relative Strength Index (RSI) on the 4-hour chart is now around 30, putting it in oversold conditions. The first signs of a possible turnaround are visible, but there is no confirmation yet. If the trendline and support hold, buyers can intervene. If not, lower levels around $0.68 and $0.59 could come into play.

Open interest on futures is over $1 billion

XPL futures Open Interest currently stands at approximately $1.09 billion, up sharply from $300 million at the end of August. The jump started during the rally in late September, when the price rose to $1.6. During that move, Open Interest spiked, indicating strong trading activity and high positioning.

Although both the price and Open Interest have peaked, the current level shows that traders remain active. The chart shows that there are still a large number of positions open, which can keep price movements volatile in the short term.

Analyst says the market is now finding a fair value

Crypto analyst Duo Nine posted an overview of XPL’s recent activities. He said:

“At $1.70, insiders started unloading… market maker support at $0.85 failed under pressure.”

He added that now that the pumping phase is over, the market is now moving towards “find the real price of XPL.”

Data shows that XPL hit its all-time high of $1.68 on September 28, while its all-time low of $0.72 occurred just a few days earlier. With the current price action testing the same range, traders are looking to see if support holds or if a further decline follows.