The Plasma token XPL showed significant strength over the past 24 hours, rising to $0.07904 with a daily increase of 27.54%. Accompanying the price rise, market trading volume also surged, with daily volume increasing to approximately $149 million, a 128.02% rise from the previous day.
This rally differs from previous rebounds. Both spot and derivatives markets have seen increased participation, indicating that new capital is flowing back in and market sentiment is increasingly betting on further short-term upside.
Open interest rose to $118 million.
The most notable increase occurred in the derivatives market. Data shows that XPL open interest rose 47.37% to $117.57 million. Typically, open interest increases alongside a rapid price rise, indicating that new capital is entering the futures market rather than merely rotating existing positions.
This indicates that traders are more bullish on XPL’s short-term price movement. However, rapid expansion of leveraged positions can intensify liquidation pressure during drawdowns. If the price fails to maintain its elevated level, volatility may increase accordingly.
Price is approaching the upper boundary of the descending channel.
From the price action, XPL previously found support near the lower boundary of a downtrend channel at $0.060, followed by a rapid rebound and push toward the resistance zone above the channel. The price is now approaching this key level but has not yet formed a clear breakout.
Technical indicators are also improving. The Relative Strength Index (RSI) has rebounded to 50.99, rising above the signal line near 43.13, indicating stronger buying pressure compared to earlier. The Parabolic SAR indicator has also moved below the price, reflecting short-term bullish momentum.
However, the downtrend channel structure has not yet been broken, and the resistance level remains valid. If buying pressure continues to maintain its current strength, XPL may test the upper boundary of the channel; if it encounters resistance at this level, the price could revert to range-bound consolidation.
Funding rate still favors long positions.
In terms of derivatives sentiment, the funding rate, weighted by open interest, remains in positive territory. This typically indicates higher demand for long positions than short positions, consistent with the recent rapid increase in open interest.
It is worth noting that while the current funding rate is relatively strong, it has not yet reached extreme levels. This suggests that market sentiment is improving, but long positions are not yet significantly overcrowded. If the price continues to strengthen and attracts more capital, XPL may still have room for further upside.