The start of 2026 has been characterized by a broader market pullback, and the $XPL ecosystem is no exception. After a strong run, the token entered a significant correction phase in early January, which was further extended by Bitcoin’s recent price volatility. Analyzing the technicals on the 4-hour timeframe, it is evident that the bears currently have the upper hand.
As seen on the latest chart, $XPL is struggling to find firm retail support at current levels. From a technical perspective, a further downside move of approximately 20% is a very realistic scenario that traders should prepare for. This would potentially bring the price into a deeper "Short Take" zone below the $0.10 mark. While this might seem discouraging for holders, these deep corrections are often necessary to clear out over-leveraged positions and establish a more sustainable long-term floor.
Once the asset reaches these lower valuation areas, I expect a small range-bound bounce to develop as accumulation begins to step in again. For followers of @Plasma , this is a time for caution and strict risk management. The project’s fundamental vision for gasless USDT transfers and high-speed settlement remains strong, but the technical structure needs time to heal before the next major expansion. Stay patient and watch the lower order blocks for signs of stabilization! #plasma