Plasma (XPL) has dropped 14.2% in the past 24h, extending its 30-day slide to 71.5%. The decline stems from rising competition, profit-taking post-ICO, and bearish technicals.
Bearish Factors:
Stablecoin chain rivalry intensifies
Post-ICO selling pressure grows
Technical breakdown deepens losses
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1ïžâŁ Stablecoin Chain Rivalry (Bearish)
Context: Circleâs Arc chain â backed by BlackRock and HSBC â launched its public testnet on Oct 28, directly competing with Plasma in the stablecoin payments sector. With Arcâs USDC integration and major institutional support, investors view it as the safer play.
Impact: Funds are rotating from XPL to Arc, pushing Plasmaâs TVL down to $929M (from $3B at launch), signaling shrinking network activity.
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2ïžâŁ Post-ICO Profit-Taking (Bearish)
Context: XPLâs September ICO produced 17x gains ($0.05 â $0.85), but with 2.5B tokens unlocking in July 2026, traders are offloading early.
Impact: The tokenâs -62.9% 90-day performance reflects fear of dilution. On-chain data shows whales dumped ~600M XPL since Oct 25 (CoinDesk).
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3ïžâŁ Technical Breakdown (Bearish)
Context: XPL broke below major support at $0.35, now sitting around $0.308. RSI is 28.84 (oversold) but no clear reversal signs. The 30-day SMA ($0.575) now acts as resistance, with next support near $0.25 per Fibonacci analysis.
Impact: Traders continue shorting rallies â Binance long/short ratio at 0.69 signals heavy bearish bias. Though MACD turned slightly positive (+0.0417), volume is down 51.6%, weakening any recovery prospects.
