Plasma (XPL) Surges 20% — What's Next?

Plasma (XPL) has recently attracted attention after a strong recovery from its lows, with price action showing signs of improving momentum. Following a period of weakness, the token has staged an impressive rebound, prompting traders to evaluate whether the move represents the beginning of a broader recovery or simply a short-term reaction within a larger trend.

While no outcome is guaranteed, recent developments have shifted focus toward several important technical levels that may influence XPL's next move.

Plasma (XPL) technical analysis

XPLUSD - 1 Day Time Frame

XPL recently moved below its February low, suggesting a sweep of a significant portion of Sell-Side Liquidity. In practical terms, this means that sell-stop orders below the structure may have been matched with buy-limit orders, creating the first important condition for a potential bullish reversal setup.

A liquidity sweep alone is rarely enough to confirm a trade idea. It represents only the first step, as the market must still demonstrate that the liquidity has been absorbed and that price delivery is beginning to shift in the opposite direction. In the case of XPL, this confirmation appeared through two strong bullish impulses, during which price managed to close above the internal lower high.

This close above the internal lower high shifted the internal structure from bearish to bullish. From a structural perspective, this is a notable development, as the market stopped respecting the previous bearish sequence and began forming a new bullish framework.

Another important factor is the resistance zone located within the newly formed internal bullish structure. Following the bullish breakout, this area may now be viewed as support, which further strengthens the bullish scenario. As long as price continues to respect this zone and maintains the new internal structure, the probability may remain tilted toward further bullish price delivery.

The strength of the move is also visible in percentage terms. The impulse that created the internal bullish structure represents a gain of approximately 104%, suggesting that the reaction following the Sell-Side Liquidity sweep was not passive but strongly directional.

Plasma (XPL) price target

Based on this development, XPL may continue advancing toward the next Buy-Side Liquidity zones, represented by the reference prices of $0.16, $0.23, $0.28, and $0.35. These levels represent logical upside objectives, as price often gravitates toward liquidity resting above previous highs following a confirmed structural shift.

The first area to watch is the $0.16 region, which could act as the nearest upside target if bullish momentum remains intact. Beyond that, $0.23 and $0.28 may become the next areas of interest, where increased selling activity or profit-taking could emerge.

If XPL eventually reaches the final referenced level near $0.35, it would represent an additional appreciation of more than 200% from the current structure. However, as with any market move, progress toward these targets would likely depend on broader market conditions and the ability of buyers to maintain control of the newly established bullish structure.

For now, the setup remains supported by the liquidity sweep, the confirmed internal bullish shift, and the newly established support zone, while continued strength above these levels could help preserve the constructive outlook.

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