Plasma (XPL) has been close to $0.1275, and the technical analysts have been keen on a single area, and this is the support level of $0.1200. this level has grown to be more than a price; it is a psychological index among the buyers.
The $0.12 Demand Wall
The price dropped to lows of which the area seems to be a firm floor at the highs of $0.21. There is a massive buying wall at on-chain volume. So far, whenever XPL drops to under 0.125, the aggressive limit orders are performed, most likely by the institution, at that price, absorbing the market, thus canceling the selling pressure. This is called absorption. It demonstrates that small traders are ceding whereas big traders consider prices below 0.13 as a discount.
Since in short term progressions, the bullish divergence within a bearish progression is identified as bullish, it is classified as a bullish Divergence in a Bearish Trend.
Daily Supertrend indicator is still indicating a bearish trend but the Relative Strength Index (RSI) indicates otherwise. Trying out the recent low at 0.1146, RSI was able to provide a bullish divergence i.e., move to higher lows whereas the price was moving towards lower lows. That is one of the pointers to the reversal i.e. the downward trend might be coming to an end.
The Path Forward
To experience a genuine turnaround, XPL must continue to hold at the current level of the $0.12 and go to the 30-days smooth moving average of the stock at 0.155 level. Any close above that resistance (per day) would be a break of the existing bearish trend. Conversely, the long-term expectation where the price remains below 0.114 has a chance of pushing the market to the vacuum area which is at 0.09. The market is currently maintaining the 0.12 ceiling but it is anxious and awaiting a rush in trading so as to determine the next course of action.