Yeliz Akmaca 
One of the main reasons for Plasma (XPL) sharp decline was the claim that the Plasma project was developed by the same team behind Blast. Blast launched in late 2023 and has since faced multiple issues, including attacks, network outages, lack of transparency in the development process, token distribution problems, and controversial airdrops. These events created investor anxiety and triggered panic selling.
Meanwhile, ICO investors sold tokens after achieving significant short-term gains, increasing spot selling volume. Analyst Alex Kruger noted that high spot sales contributed to the decline and it was not caused by short squeeze activity.
Spot Selling and Market Reaction
- ICO profit-taking pressured the price
- FUD rumors triggered panic selling
- High spot selling increased supply in the market
- Abnormal funding rates accelerated the decline
These factors indicate that XPL drop is more related to market psychology and short-term movements rather than fundamental changes.
Analyst Opinions
Charts show XPL bullish structure was disrupted, but analysts expect recovery if FUD subsides and ICO selling pressure eases. Our analysis highlighted $0.8877 as a strong support level, with a ~20% rebound already observed. Recent stablecoin applications also continue to attract institutional investor interest.
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