#plasma $XPL
XPL has recently experienced price fluctuations, dropping by 3.76% in the past 24 hours, with technical signals showing mixed results.
1. Market Adoption: XPL, as a Layer 1 blockchain focused on stablecoins, is rapidly gaining widespread recognition, particularly for its zero-fee transactions and notable institutional collaborations.
2. Technical Outlook: Despite a recent price pullback, the MACD indicator has shown a bullish crossover, indicating that upward momentum is beginning to manifest.
3. Centralization Risks: Due to the limited number of validating nodes, concerns about potential centralization of the network remain.
Highlights
1. Institutional Adoption: XPL is witnessing significant adoption by institutions and merchants, with ConfirmoPay processing over $80 million monthly and now supporting zero-fee USDT payments on the network.
2. Stablecoin Utility: Plasma has established itself as a leading Layer 1 blockchain focused on stablecoins, holding 32% of native USDT, providing zero-fee transfers and sub-second finality, driving its TVL to $13 billion.
3. Bullish MACD Crossover: The MACD indicator has recently shown a bullish crossover, with the MACD line crossing above the signal line and the histogram turning positive, suggesting potential upward momentum.
Risks
1. Centralization Concerns: Community discussions point out that due to the limited number of validating nodes, there may be centralization risks, raising concerns about network control and governance.
2. Bearish Price Momentum: The price of XPL has recently dropped about 2.6% from its intraday high, currently trading below key short-term and mid-term exponential moving averages (EMA 7, 25, 99).
3. Weak Relative Strength Index: The relative strength index (RSI) across multiple periods (6, 12, 24) remains below 50, indicating that the market is still under bearish momentum, lacking strong buying support.