JASMY Price Dip After Rally: Bullish Reversal?

JASMY Price Correction Following 23% Rally

JasmyCoin (JASMY) experienced a significant price correction, dropping 7% after a week-long rally that saw gains of 23.76%. While the reason for this sudden downturn remains unclear, the reduced trading volume (26.93% decrease to $60.97 million) suggests some investors are taking profits.

Positive Underlying Market Fundamentals

Despite the price drop, several positive market indicators suggest a potential bullish reversal:

• Decreasing Exchange Reserves: The amount of JASMY available on exchanges has fallen to 10.6 billion tokens, indicating a tightening supply and potential future price pressure.
• Growing Long-Term Holders: The decrease in exchange reserves strongly suggests an increase in long-term holders, who are less likely to sell in the short term.

This reduced supply, coupled with potential sustained demand, may lead to a supply squeeze, driving prices upward. However, current price action does not yet reflect this.

Source: CryptoQuant

Technical Analysis Suggests Potential Bounce-Back

Technical analysis provides further insights into the potential price trajectory. While there's a slight risk of a dip to the $0.01304 Fibonacci retracement level (50% retracement from the recent peak), historical market behavior suggests upward momentum often resumes after retracing between 50% and 60%.

Source: TradingView

While Fibonacci levels above could act as resistance, analysis using Global In and Out of the Money (GIOM) suggests these levels may not be as significant as those further ahead. A major resistance level is at $0.019, where significant selling activity has occurred in the past.

Source: IntoTheBlock

Liquidity Flow and Indicators

The Money Flow Index (MFI) currently stands at 75.30, indicating a healthy inflow of liquidity. However, crossing above 80 might signal an impending correction. The Relative Strength Index (RSI) at 52.53 shows slight downward pressure, suggesting potential short-term weakness. A rebound in the RSI could coincide with the price hitting the Fibonacci support level.

Source: TradingView

Disclaimer: This analysis does not constitute financial advice. Investing in cryptocurrencies involves significant risk.

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