XPL, the native token of stablecoin-focused blockchain Plasma, has dropped more than 15% in the last 24 hours, extending its losses to over 35% since reaching a record high of $1.68 earlier this week. As of now, XPL is trading below $1.10, making it the worst-performing token among the top 100 today.
The token’s price has been falling steadily since setting a new all-time high just days after launch. While XPL remains significantly above its initial trading price, the speed and scale of the correction have caught the attention of traders and analysts.
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Indicators Confirm Reversal
Technical indicators now reflect a clear loss of upward momentum. The Relative Strength Index (RSI) has dropped from overbought conditions to 55, while the Stochastic RSI has fallen to 41, pointing to a cooling trend.
Momentum signals across several platforms have flipped neutral or negative. XPL has also moved below short-term moving averages, suggesting bearish pressure in the near term. However, it still trades above its long-term trendlines, leaving some room for a potential recovery if support levels hold.
The next major technical level to watch is $1.01, marked by Fibonacci retracement levels. If this support fails, the next possible floor lies around $0.89. On the other hand, reclaiming the $1.20 level may signal renewed buying interest and could shift short-term sentiment back in favor of bulls.
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Profit-Taking and Market Sentiment Shift
The current drop appears to be driven by profit-taking, especially from early investors who saw large returns in the days following the mainnet launch. With XPL offering massive returns for some public sale participants, many are now cashing out.
One of the largest known positions – a $28.7 million leveraged XPL trade held by crypto investor Huang Licheng (“Machi”) – is now under pressure, with his liquidation level set at $0.58. While still far from that price, such large positions could add further instability if losses continue to mount.
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Project Fundamentals Remain Unchanged
Despite the sharp correction in price, Plasma’s underlying project continues to roll out new features. Its Plasma One neobank app, native Bitcoin bridge, and EVM-compatible tools are still active, and institutional support remains strong.
But for now, XPL’s price movement appears disconnected from the project’s fundamentals. With liquidity still limited and technical signals flashing caution, traders are watching closely to see whether the token can find a stable range – or whether more downside is ahead.
