Plasma Price Patterns Indicate Potential Rebound Amid Increase in Transactions

Plasma (XPL) has encountered a decline in price following its recent airdrop, yet its decentralized finance (DeFi) activities and assets are witnessing substantial growth.

Key Takeaways

Plasma (XPL) token price fell below $1, hitting a low of $0.8720.
Transaction volume surged by 5,200% in the past month to exceed 28.7 million.
Active addresses soared past 878,600, surpassing chains like Somnia and Starknet.
Plasma became the fifth-largest chain by total value locked (TVL) with over $10 billion.
The stablecoin market cap for Plasma rose to over $5.28 billion.
A partnership with Chainlink is expected to boost Plasma's growth.
The XPL price drop is linked to selling by airdrop recipients.

Plasma price

Summary of Current Market Conditions

Despite a significant drop in Plasma token prices, its underlying ecosystem continues to flourish with impressive transaction volumes and active addresses.

Price Decline Amid Ecosystem Expansion

The Plasma token (XPL) has seen a significant decline, falling below a key support level of $1 and reaching a low of $0.8720. This marks almost a 50% decrease from its peak earlier this month. Despite this downturn, the Plasma ecosystem is thriving. According to data from Nansen, transaction volumes within the Plasma network skyrocketed by 5,200% over the past 30 days, surpassing 28.7 million transactions. This impressive growth positions Plasma as one of the fastest-growing platforms in both layer-1 and layer-2 sectors.

Furthermore, the rise in active addresses reached over 878,600, placing Plasma ahead of other notable chains like Somnia, Starknet, and Avalanche. The data reveal that Plasma is now the fifth largest blockchain in total value locked (TVL), with an astonishing over $10 billion, demonstrating its strong performance compared to other popular platforms like Ethereum, Solana, BSC, and Bitcoin. In addition, its total stablecoin market capitalization has increased to over $5.28 billion, solidifying its presence in the industry.

Additionally, Plasma’s strategic partnership with Chainlink, its official oracle provider, is anticipated to further accelerate its growth. The recent price dip appears to correlate with a typical market behavior where airdrop beneficiaries sell their tokens shortly after receiving them.

Technical Analysis of XPL Price

Plasma price pattern points to rebound, transactions jump - 1 Plasma price chart | Source: crypto.news

Reviewing the two-hour chart, the Plasma price initially peaked at $1.6938 post-airdrop, but subsequently fell to a low of $0.8312. However, there are emerging signs that the price may have found a bottom, as it established a double-bottom pattern at $0.8312. This pattern is widely recognized as a bullish reversal indicator in technical analysis.

Additionally, the formation of a falling wedge pattern provides further bullish signals. As a result, analysts are optimistic about the potential for a strong bullish breakout, possibly driving the price up to the psychological resistance level of $1. Conversely, if the price falls below the support level of $0.8312, this bullish outlook would be reconsidered.