The native token of the stablecoin-focused chain Plasma [XPL] has declined sharply, losing over 12% of its market capitalization in 24 hours. Market data indicates strong selling pressure, with a 38% spike in daily trading volume and a negative funding rate for perpetual futures. The price is now approaching a key demand zone near $0.08 as network activity has fallen over the past two weeks.
The token associated with the Plasma chain, XPL, has extended its decline, losing 18% over two consecutive days. This drop follows a broader loss of momentum for chains linked to the stablecoin narrative.
Market data shows a 38% increase in daily trading volume, confirming significant selling pressure. The coin’s turnover ratio of 0.436 indicates a large portion of its market capitalization was actively traded.
The price is now moving toward the $0.08 zone, identified as a key demand level. However, the bearish strength, measured by the Bull Bear Power indicator, remains significant and is increasing.
Perpetual futures traders are exhibiting extreme pessimism, with the OI-Weighted Funding Rate turning sharply negative to -0.0437%. This sharp decline could mean further downside risk, especially if bulls did not step in.
Network activity on the Plasma chain has also weakened over a two-week period. The number of transactions fell by more than 12%, from 416,500 to 365,900.
Despite the weekly decline, daily transactions rose by 4.28%, and total transaction fees increased by 56%. This short-term spike in activity is likely linked to the recent sell-off.
