XPL crypto: Assessing if $160M token unlock can trigger Plasma’s pullback

Plasma [XPL] registered a daily price surge of 24.18% as investors positioned around a massive token unlock, as a large team transfer intensified supply risks.

Notably the rally arrived as Plasma planned to unlock around 1.76 billion XPL valued roughly $160 million, representing 63.2% of the total circulating supply. 

Besides, another large transaction however complicated the market setup surrounding the unlock. In particular, Plasma Team moved 300 million XPL, worth roughly $33.07 million, to an unknown new wallet.

This transaction created another supply consideration as XPL price continued pushing higher. Buyers however absorbed the uncertainty and pushed the price upwards instead of retreating.

This reaction hence suggested market participants had increasingly positioned ahead of the unlock rather than waiting for its completion.

Leverage piled into XPL’s rally 

On the derivatives market, traders expanded their exposure considerably as XPL extended its price increase. The derivatives trading volume increased 182.78% to $744.47 million during the trading session.

Additionally, the token’s Open Interest also saw an increase of 52.16% to $302.60 million. The expansion implied XPL’s market participants added fresh positions instead of simply closing the existing exposure.