Outside Source
Jasmy price has suffered a harsh reversal this month, moving into a bear market after falling by more than 30% from its highs.
Jasmy, like other cryptocurrencies, is being affected by the recent Bitcoin price action. After rising to $72,000 earlier this month, Bitcoin formed a double-top pattern and dropped by over 14%.
This drop happened as Bitcoin ETF outflows continued and as the German government sold thousands of Bitcoins. Several Bitcoin mining companies have also sold their coins in a sign of capitulation. As a result, as shown below, Bitcoin balances in exchanges have risen slightly in the past few days.
Bitcoin balances in exchanges
Additionally, there are signs that the Fed will be one of the last major central banks to cut interest rates because US inflation has remained stubbornly high. Some of its peers like the Bank of Canada, ECB, and SNB have started their cutting cycle.
Jasmy’s retreat has also happened at a time when its mentions on social media and its trading volume has pulled back. Data shows that the daily average of JASMY traded in exchanges has averaged less than $160 million in the past few days.
Earlier this month, the average amount was over $500 million. The same has happened in the futures market where open interest has dropped from $82 million on June 5th to $40 million today.
Jasmy open interest
Jasmy price forms a bearish pattern
JasmyCoin price chart
Technically, the recent sell-off started when the JASMY token formed a long-legged doji candlestick pattern on June 4th. In most cases, this doji is one of the top signs of a reversal in technical analysis.
JASMY has now formed a bearish pennant pattern, which is made up of a long flag pole and a symmetrical triangle. This pattern often leads to a bearish breakout when it nears the confluence point. As a result, unless market conditions improve, there are signs that the token will drop soon.
Fortunately, JasmyCoin has constantly remained above the 50-day moving average and the important support at $0.02757, its highest swing in March. As such, more downside will be confirmed if the price drops below that point.
This article first appeared at crypto.news
