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XPL Price Falls 15% as Traders Bet on Early Recovery
Plasma [XPL] extended its October downturn with another sharp 15% drop in the past 24 hours. However, new on-chain and derivatives data suggest that traders may be positioning for a potential rebound — if bullish momentum can hold.
Open Interest Rises Despite Price Drop
While most assets see Open Interest (OI) shrink during heavy sell-offs, Plasma’s OI rose from around $233 million to $255 million, defying expectations.
Typically, falling prices cause traders to close their positions, reducing OI. This time, the increase indicates new positions are being opened, possibly by institutional traders taking advantage of the dip.
The inflow of new capital into the derivatives market also signals that speculative confidence could be returning, even as spot prices remain under pressure.
Short Liquidations Reflect Market Uncertainty
Data showed Aggregated Short Liquidations reaching $1.33 million, compared to only $49,000 in longs.
This imbalance suggests that short sellers are being squeezed as volatility picks up.
“The setup could swing either way — a deeper correction if momentum fades, or a rapid bounce if short sellers retreat,” one market analyst noted.
The spike in liquidations adds uncertainty, but it also shows that short-term traders are actively adjusting to shifting market conditions.
Long Positions Dominate as Bulls Test Strength
At press time, Plasma’s average Long/Short ratio stood at 2.027, meaning that long positions outnumber shorts roughly two to one.
Such a ratio often reflects growing confidence among traders expecting a price recovery.
Still, analysts caution that sustained demand in both Spot and Futures markets will be key to confirming any trend reversal.
The combination of short squeezes, rising open interest, and stronger long exposure gives buyers a short-term advantage — but lasting momentum depends on consistent accumulation and market support.
What’s Next for Plasma (XPL)?
In summary, Plasma’s market setup looks mixed but cautiously optimistic.
Despite its steep October slide, the token continues to attract new capital in derivatives markets — a possible early signal of a rebound in sentiment.
If the bullish trend strengthens and demand holds steady, XPL could be nearing the early stages of a technical recovery.
For now, traders are watching whether the recent spike in long positions can translate into sustained price traction.
