Plasma’s Market Downturn Despite Network Growth
Plasma’s token price has entered a bear market following a recent airdrop. Despite this, the network’s decentralized finance (DeFi) transactions and assets are surging.
Plasma’s price drop highlights a gap between on-chain performance and market sentiment. The token’s value fell below $1, hitting a low of $0.8720.This represents a near 50% decline from its monthly high. Though, the network’s activity has skyrocketed. Nansen data reveals a 5,200% increase in transactions over the past month, reaching over 28.7 million. This growth makes it the fastest-growing player in layer-1 and layer-2 ecosystems. The number of active addresses has also surged to over 878,600, surpassing chains like Somnia, Starknet, and Avalanche. Its DeFi total value locked (TVL) has jumped to over $10 billion, placing it fifth among major chains. Its stablecoin market cap is now over $5.28 billion.
Despite these achievements, the price drop shows how short-term selling can overshadow strong fundamentals. A new Chainlink partnership could boost its growth. The price drop is likely due to airdrop recipients selling their tokens, a common post-airdrop trend.
Technical analysis shows a potential bullish reversal. The two-hour chart indicates a double-bottom pattern, suggesting a possible recovery. The coming weeks will test if these fundamentals can restore investor confidence.
Key points include:
- Transactions increased by 5,200% in 30 days.
- It has become the fifth-largest chain by TVL.
- Chainlink’s partnership could further accelerate Plasma’s growth.
Plasma’s TVL growth and Chainlink partnership are positive signs. The token’s price peaked at $1.6938 post-airdrop. A falling wedge pattern hints at a potential bullish breakout.
Plasma’s price drop doesn’t reflect its strong performance. The network’s TVL has surpassed Cardano, Tron, and Suio. The price may recover if it holds above $0.8312. A drop below this level could negate the bullish outlook.
Plasma’s price decline doesn’t match its network’s success. The token’s TVL growth and Chainlink partnership could further accelerate Plasma’s growth.
Thus, the XPL price has likely crashed as the airdrop recipients start selling their tokens. this is a common occurrence whenever a new airdrop happens.
XPL price technical analysis
Plasma price chart | Source: crypto.news
The two-hour chart shows that the Plasma price peaked at $1.6938 after its airdrop. It then plunged and reached a low of $0.8312.
There are signs that the coin has bottomed as it formed a double-bottom pattern at $0.8312. This is one of the most popular bullish reversal patterns in technical analysis.
It has formed a falling wedge pattern, which is also another highly bullish sign. Therefore, the token will likely have a strong bullish breakout, potentially to the psychological point at $1. A drop below the support at $0.8312 will invalidate the bullish view.
