$XPL The market plummeted 92% to a historic low, but this may be the perfect time to buy the dip in gold! In the recent cryptocurrency market crash, the entire market was in turmoil, revealing the dual-edged potential and risks of Plasma. Bitcoin fell below $80,000, and Ethereum also plunged over 20%, with countless projects seeing their market values halved.
@Plasma As an L1 blockchain focused on stablecoin payments, it should have been a safe haven, but it couldn't escape either. $XPL dropped dramatically from a peak of $1.60 to around $0.12, a staggering decline of 92%! Analyzing calmly,
First, let's review #Plasma the core value. As an L1 chain based on Bitcoin's security, Plasma is designed specifically for stablecoins like USDT, with transaction settlements taking just one second. USDT transfers incur zero fees and are fully EVM compatible. This means it can seamlessly integrate into the DeFi ecosystem, attracting substantial payment traffic.
As early as the end of 2025, Plasma attracted $2 billion TVL on its launch day, allowing early investors to easily achieve a 32-fold return! Backed by giants like Tether and Bitfinex, Plasma's vision is to become a global stablecoin payment infrastructure, with immense potential. But why was $XPL so severely affected during the crash? The key lies in supply pressure. On January 27, 2026, 88.9 million $XPL will unlock and flow into the market, with an estimated total unlock of up to 3.55 billion throughout the year, doubling the supply! Coupled with overall market panic, the selling pressure was overwhelming, leading to a price avalanche. TVL dropped from a peak of $6.35 billion to $3.26 billion, with daily trading volume only at 40,000 transactions and revenue at $295,000—this is far from enough to hedge against unlocking sell orders.
As a seasoned trader, I advise everyone not to panic; this may be the turning point for Plasma's low. Technically, $XPL has reached the bullish order block on the 4-hour chart, with RSI breaking below the 20 oversold zone, and the capital inflow reaching $1,230,000, indicating support at the bottom. In the short term, if geopolitical tensions (such as the situation in the Middle East) and fears of a U.S. government shutdown ease, a market rebound can be expected. If $XPL holds the support at $0.111, the target looks to be $0.123-$0.125, or even higher. However, in the long term, Plasma needs to address its pain points: increase the real payment adoption rate, push for staking of 40-50% of the supply, develop more DeFi applications that require holding tokens, and integrate partners to create utility. Currently, revenue can only burn 70 million $XPL annually, needing a fivefold increase to balance selling pressure. Recommended strategy: accumulate in batches, set a stop loss at $0.111, and target profits in batches. At the same time, pay attention to updates in the Plasma ecosystem, such as the launch of new DeFi protocols or announcements of significant partnerships, all of which can catalyze a rebound.
Remember, the crypto world is unpredictable, but professional analysis + risk control cannot compare to a single black swan event!
