Plasma (XPL) price has been under pressure for most of the past month, but traders are beginning to pay attention again.
Even though the price has stayed in a downtrend, there are now early signs that buyers might slowly be stepping back in.
Analyst Sjuul from AltCryptoGems pointed out that the XPL chart “could start to look interesting again” after what he sees as a clear bullish divergence forming on the RSI.
The XPL price trades around $0.3130 after a bounce from heavily oversold levels. This recovery comes during a stressful moment for Plasma’s wider ecosystem.
Stream Finance reported a $93M loss, which pushed its xUSD stablecoin to depeg upward to $1.15. Since xUSD is tied to Plasma-based collateral, many traders were worried about resulting sell pressure.
Even with that fear in the background, the XPL price still found support and saw stronger trading volume return, which is a sign the market hasn’t given up on it.
What you'll learn 👉
Analyst Says XPL Price Needs One More Signal to Confirm a Reversal
Sjuul highlighted that the plasma price dropped below its October 10th low before rebounding. Taking out that level may have cleared some weak sell pressure.
What matters more is what happened underneath the chart. While the price fell lower, the RSI turned upward. That kind of movement is called a bullish divergence and often appears when sellers are losing strength.
For Sjuul, the next step is straightforward. The XPL price needs to build a stronger bullish market structure. If the price starts making higher highs and higher lows, long traders may begin stepping in with more confidence.
What The Plasma Chart Shows
The XPL price has been holding above the key support around $0.27, and this area once again attracted buyers.
Volume surged during the bounce, which typically means the recovery is based on real demand, not just a brief spike. The price is now pushing into short-term resistance near the 7-day SMA around $0.3179. Staying above that level would strengthen the case that momentum is shifting.
The overall altcoin market is still weak, so the Plasma price does not have much help from the trend around it. That is why holding support and showing progress step-by-step matters so much here.
What Comes Next for XPL?
Sentiment around Plasma remains cautious because of the stablecoin fallout. Some leveraged positions tied to Plasma assets are still at risk if confidence drops again. That ongoing uncertainty keeps traders alert.
At the same time, there are signs that some larger buyers may see opportunity in these lower levels. Open interest continues to rise, and earlier short positions were caught offside during the bounce.
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If Plasma price pushes above resistance and holds, that would give XPL room to move higher and possibly challenge the wider range above. But if it slips back toward $0.27 and breaks below it, the market may start preparing for another attempt at new lows.
For now, patience seems to be the shared view. Traders are waiting for the chart to prove the shift before calling it a full trend change.
Finally, XPL is still rebuilding after a difficult month, but the recent chart behavior suggests the selling pressure may not be as strong as before.
Sjuul’s analysis highlights that the first signs of a reversal are already visible beneath the surface. What the market needs now is a clear show of strength from buyers.
If the ecosystem steadies and confidence grows, the XPL price may have enough momentum to create a new path upward. Until then, the chart will keep doing the talking.
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