KEY TAKEAWAYS

• XPL price jumps 13% as bullish momentum returns after correction.

• AO and CMF confirm capital inflows and fading bearish pressure.

• Here is what a break above $0.65 could do to the Plasma crypto.

Plasma (XPL) price has staged a strong comeback this week, rebounding after a prolonged sell-off. Over the past 24 hours, the cryptocurrency’s market value has increased by 13%.

Interestingly, the XPL price surge follows a milestone, as Plasma has disclosed that it has processed over $50 billion in USDT transfers.

Amid this development, sentiment has turned bullish for the cryptocurrency, with signs that it could trade higher.

Plasma Sees Bullish Momentum

On the 2-hour chart, XPL’s Relative Strength Index has rebounded from the oversold zone at 30 and now sits at 47.69, nearing the neutral zone.

This movement signals a gradual return of bullish momentum as traders start reaccumulating around key support levels.

The Money Flow Index (MFI) has climbed above its neutral zone at 50 and currently stands at 59.70, reflecting stronger buying pressure.

This rise in MFI highlights increasing confidence as liquidity flows back into XPL after its major correction. Interestingly, this also came as XPL’s price broke above the upper trendline of a descending triangle.

If momentum holds, XPL’s price could reach its immediate resistance at $0.66, marking a short-term recovery zone before testing stronger resistance ahead.

Milestone Boosts Demand

This growing confidence aligns with Plasma’s latest announcement on its official X (formerly Twitter) handle.

“In the two weeks since launch, Plasma has processed $50B+ in USD₮ transfer volume, fourth only to Tron, Ethereum, and BSC.” The project stated.

This achievement places Plasma among the top blockchain networks for stablecoin transactions, reigniting investor interest and suggesting that. XPL’s price could be gearing up for a broader bullish reversal.

XPL Price Targets $1

On the 4-hour chart, the Awesome Oscillator (AO) reads -0.024, with green histogram bars, indicating a steady shift toward positive territory as bearish momentum wanes.

This suggests that buyers are gradually taking back control after its consolidation period.

Furthermore, the Chaikin Money Flow (CMF) indicator supports this bullish picture, as it sits at 0.09 above the neutral line.

This reading confirms growing buying pressure and consistent capital inflow, indicating that the market is regaining confidence in the asset’s short-term potential.

If this momentum continues, Plasma’s price could extend its recovery, retesting earlier resistance levels.

The Fibonacci retracement levels indicate that the XPL price is approaching the 0.236 level at $0.65, while currently trading at $0.49 at press time.

A decisive breakout above this could accelerate bullish momentum, driving prices toward the 0.382 Fib level at $0.85. If buyers sustain pressure beyond $0.81, the next target could be reached at the 0.618 Fib level, which is approximately $1.17.

Such a move would confirm a strong recovery and establish a higher low on the chart, signaling an early bullish reversal pattern.

However, if the price fails to hold above $0.49, XPL’s price could face a corrective pullback toward $0.32.