XPL holds $0.08 despite major unlock ahead

The XPL price remains stubbornly above $0.08, even with a large token unlock on the horizon. That is the observation of trader DaanCrypto, who has seen volatility in recent weeks but little downward pressure on that support level. He holds a position in the coin himself and expects a rise over the coming months, provided the broader market cooperates.

In brief:

• XPL is trading around $0.08 despite a large upcoming token unlock
• DaanCrypto suspects that part of the tokens has been covered through hedging
• He holds a spot position himself and is counting on a price rise in the medium term

Support level holds at $0.08

On the six-hour chart it is clearly visible that $0.08 has already acted as a support level several times. The price touched that level in August, September and again in mid-September, with a recovery following each time. At the time of the analysis, XPL is trading around $0.0858.

DaanCrypto describes XPL as a difficult coin to trade. Even so, the price held up last week as well during what he describes as turbulent market conditions, which he finds remarkable given the size of the approaching unlock.

Unlock creates uncertainty, but the trader remains positive

A token unlock means that a portion of the coins that were previously locked becomes available for sale. That usually leads to selling pressure. DaanCrypto suspects that a large part of the upcoming unlock has already been covered, which would explain why the price has not fallen yet.

He does not rule out, however, that a decline may still follow in the short term. His expectation for the medium term is more positive: if the crypto market as a whole remains stable, he expects XPL to show a price rise in the coming months. He holds a spot position in the coin himself.