Plasma (XPL) saw a significant rise in its market activity recently. It recorded a 128% daily surge in its spot volume in the last 24 hours alone.
As expected, the recent hike in spot volumes affected the token’s price action too, with the same rising by 14% in the aforementioned period.
Liquidity sweep clears the path higher
As the price pushed upwards, XPL’s price action cleared roughly $362K worth of liquidity clustered around the $0.08-level.
In the past, the clusters of liquidity have acted as barriers where the price tended to reverse or stall. Clearing the barrier opens the door for a continuation.
For instance, the short squeeze in XPL’s case revealed that a large number of short orders were cleared out and buyers may be likely to extend their dominance in the future.
Rising Open Interest supports bullish structure
Beyond spot activity, derivatives data also seemed to be in alignment with the move. In fact, Open Interest surged significantly over the same period, with Plasma Network’s figures recording a $39 million daily surge.
The surge hinted at fresh institutional positions entering the market, rather than just short covering. When a hike in Open Interest accompanies a price hike, it typically reinforces the strength of the market trend.
Can Plasma reach the $0.1263 resistance?
With momentum building on the daily chart, the market attention will now shift to the next key resistance in line at $0.1263.
The press time setup on the daily chart favoured a potential continuation. The altcoin’s recent rally has been supported by strong spot volume, a short squeeze and rising institutional demand.
However, follow-through in the buying pressure is still important. If the buying pressure is sustained, XPL’s price action could be in for a continuation surge towards the next resistance level.
On contrary, if the momentum is not maintained, the token might consolidate first before making the next move up.
At the time of writing, the trend appeared to be in favour of the market bulls, with the next key point being $0.1263.
Final Summary
- Plasma’s price surged by 14% as spot volume jumped 128%, signalling strong market participation.
- Liquidity clearance and rising Open Interest seemed to support a potential move towards $0.1263.
