xpl$XPL is now trading near a very important demand zone after months of steady downside pressure
this area matters because it is where buyers previously stepped in with strong volume and defended price
looking at market structure the downtrend is still valid but momentum is clearly slowing
selling volume is decreasing and price is no longer making aggressive lower lows
this usually means sellers are getting exhausted
from a technical view the descending trendline has capped price many times
a clean break and hold above this trendline would shift short term structure from bearish to neutral bullish
this kind of move often attracts short term traders and spot buyers looking for a bounce
on chain data also shows interesting signals
outflows from exchanges are stabilizing and large wallets are no longer increasing sell pressure aggressively
this does not mean full reversal yet but it supports the idea of accumulation near demand
fundamentally plasma is still focused on stablecoin infrastructure and defi rails
price weakness recently is more about market rotation and liquidity drying up than project failure
if broader market sentiment improves xpl could react fast due to thin liquidity
risk management is still very important
a break below 0 114 would invalidate this demand zone and open more downside
confirmation is needed not prediction
overall this is a wait and watch zone
confirmation above trendline brings short term upside
failure means patience is required
dyor nfa
#XPL #Plasma #altcoinseason #Macro
