No... it is only meant for coloring one line at the time...
Although you can make this process a bit more handy (eg: in case you always use the same coloring) if you use it in combination with Messenger Plus!
QuickTexts.
But,
make sure you have version 1.01 of XFade and not 1.0 or 2.0
(2.0 is actually also version 1.0 which contains a bug)...
For more details on this see:
CookieRevised's reply to Colour Fade plugin
Also, to make absolutely sure you have the correct version and instructions (re)download it again from the post linked above! And read the instructions within that zipfile.
------------------------
To do it automatically, you can create/program an AutoTalker in the
StuffPlug plugin. The Autotalker could call on his turn the XFade plugin with appropiate parameters (aka color numbers and text).