JasmyCoin [JASMY] The market’s strongest asset, the equities, has posted a modest 10% increase at the time of publication, as the buying pressure is continuing to grow.
This latest development is of greater significance, as JASMY now has recovered all losses since January 23rd. The recovery took approximately three months. This development indicates a strengthening of market confidence, and confirms broader bullish structures forming around this asset.
Even with the continued rally, there are several indicators that suggest the market is approaching a critical decision point.
JASMY faces pressure at key supply zone
Risk to the primary risk JASMYThe ongoing rise of, comes from its position in a major block for supply orders on the chart.
Supply order blocks are a common place for traders to make profits. They can slow down momentum, or even cause temporary reverses. JASMY’s entry into this area has already shown signs of early selling pressure. A red candlestick was formed as sellers reacted close to resistance levels.
The current price movement suggests that the asset may retrace towards the first support area, where buyers could attempt to gain control and continue the upward trend. The price may extend downwards to a secondary level of support before finding greater stability if the bearish trend intensifies.
If the breakout is successful, it could lead to resistance around $0.00814. A broader rally might extend up toward $0.00983.
Momentum remains strong despite overvaluation signals
Although some indicators indicate that JASMY could be trading over its fair value now, the bulls still maintain their control on the market.
Bollinger Bands is a common indicator that can be used to detect overbought conditions. As of this writing, JASMY was in the higher volatility zone, a place historically associated with high prices and quick pullbacks.
As momentum decreased, previous moves to the upper Bollinger Band have been followed by temporary corrections.
In spite of this, the buying activity is high. Bull Bear Power continues to indicate a bullish trend, which shows that the buyers are still dominating the market.
Since the 9th January, this indicator has formed its largest green histogram bars. This move highlights the aggressive buying and indicates traders expect more upsides in near-term.
Perpetual traders begin positioning defensively
The spot futures market is showing signs of caution, despite the fact that sentiment on the spot market remains bullish.
Open Interest was up 32% at time of writing to $33 Million, which indicates that leveraged positions around this asset have increased significantly.
The Funding Rate also turned negative, and fell sharply, to 0.0276%. This indicates that the perpetual market is beginning to be dominated by short positions.
Negative Funding Rates are usually indicative of a growing negative sentiment among leveraged investors, since short sellers pay more to keep their downside positions. If the selling pressure increases along with rising leverage, JASMY may face increased volatility in future sessions.
Final Summary
- The JASMY price has recovered, but the growing resistance in a critical supply zone as well as the increasing short interest on the permanent market may threaten this rally.
- The asset’s price is overextended, but the bullish momentum continues.
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Source: ambcrypto.com
