Plasma price pattern points to rebound, transactions jump

Plasma price moved into a bear market after its recent airdrop, even as its transactions and assets in its decentralized finance surge.

Plasma price plunged despite ecosystem growth

Plasma (XPL) token slipped below a crucial support level at $1 and then bottomed at a low of $0.8720. It has dropped by almost 50% from its highest point this month.

Plasma token has plunged despite the strong performance of its network. Nansen data shows that number of transactions in the network jumped by 5,200% in the last 30 days to over 28.7 million. This growth made it the fastest player in the layer-1 and layer-2 industries.

More data revealed that the number of active addresses also soared, reaching over 878,600. This makes it bigger than other chains like Somnia, Starknet, and Avalanche.

More data shows that Plasma has become the fifth-biggest chain in terms of total value locked. Its DeFi TVL jumped to over $10 billion, making it only smaller than popular chains like Ethereum, Solana, BSC, and Bitcoin.Plasma has overtaken popular chains like Cardano, Tron, and Suio.

Additionally, Plasma has become a top name in the stablecoin industry, where its total stablecoin market cap has jumped to over $5.28 billion.

Plasma’s growth will likely accelerate after thee network reached a partnership with Chainlink,which is now its official oracle provider.

Therefore, 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.