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Plasma’s XPL token fell 10.22% over 24 hours and traded around $0.06335 at the time of reporting, according to AMBCrypto. Spot trading volume dropped 22.35% to $102.48 million over the same period. The decline followed a November 2 funding trace that investigators said linked addresses behind November liquidations to wallets tied to trading in April.
AMBCrypto reported that the funds were traced through an exchange hot wallet before USDT withdrawals reached addresses associated with the November trading. The outlet also noted the trace did not establish common ownership or control of the wallets.
Also read: Plasma Stripe Deal Sends XPL Up 10.92% as Volume Jumps 65.51%
Key facts
- XPL fell 10.22% in 24 hours and traded near $0.06335, with spot volume down 22.35% to $102.48 million.
- Open interest fell 15.82% to $171.42 million, and derivatives volume dropped 8.78% to $203.62 million, per CoinGlass.
- The OI-weighted funding rate sat at -0.0019% on November 3, meaning shorts were paying longs.
- XPL lost the $0.08197 level, then broke below $0.07250 and moved toward $0.0600.
- On April 3, XPL rose 42% to $0.167 before falling more than 40% within minutes; about $32.99 million in short positions were liquidated during the surge.
Derivatives traders cut exposure
Futures traders reduced their positions during the sell-off. Open interest, which tracks outstanding derivative contracts, declined by 15.82% to $171.42 million, according to CoinGlass data cited by AMBCrypto. Derivatives trading volume also fell 8.78%, to $203.62 million, signaling less activity in futures markets.
The shift in positioning came alongside a move in XPL’s OI-weighted funding rate, which had been mostly positive through October. It turned negative during the drop, reaching -0.0019% on November 3. A negative funding rate means short sellers pay longs, pointing to a bearish tilt in perpetual futures. AMBCrypto noted the size of the negative reading was not large enough to create significant short pressure on its own.
The April precedent behind the wallet trace
The investigation’s relevance traces back to April 3, when XPL climbed 42% to $0.167 and then fell more than 40% within minutes. Five addresses opened long positions before the rally, released margin during the climb and were ultimately liquidated. About $32.99 million in short positions were liquidated during the initial surge.
The suspected wallet links renewed questions about leveraged trading activity and how it affects XPL’s price. AMBCrypto described the connections as deepening concerns over the token’s recovery, while stopping short of claiming proof of common control.
Technical picture points to $0.0600
XPL’s daily structure was bearish, with sellers pushing the price below previously established support levels. The token lost $0.08197 before breaking $0.07250, putting $0.0600 in focus as the next line of defense. The MACD fell below its signal line, with a histogram reading of -0.00062. The Relative Strength Index dropped to 34.07, under its 40.79 moving average, an area that approaches oversold conditions without a confirmed reversal. Buyers would need stronger demand to hold the level.
Why it matters
XPL’s move shows how quickly derivatives positioning and on-chain scrutiny can reinforce each other in a thinly traded altcoin. Deleveraging lowers the immediate risk of cascading liquidations, but the decline in spot volume means less buying support if holders keep selling. For traders holding leveraged XPL exposure, the funding flip and shrinking open interest amount to a market that is turning more cautious rather than more confident.
What to watch
Whether XPL holds $0.0600 on a daily close is the immediate test, with a break lower leaving the token without a published support level from this analysis. A recovery in open interest or a return of the funding rate to positive territory would be the first signs that positioning is stabilizing.
This article is not financial advice, and cryptocurrency markets are volatile and uncertain.
Reported by AMBCrypto.
Source: AMBCrypto