JasmyCoin Drops 7% After 23.76% Rally, Trading Volume Shrinks 26.93%

JasmyCoin [JASMY] experienced a significant decline, dropping more than 7% in a single day following a week-long rally that saw it jump 23.76%. This decline positioned JASMY among the top losers in the market. The reasons behind this price drop remain unclear, but it is notable that the trading volume concurrently shrank by 26.93% to $60.97 million, indicating that weaker hands were exiting the market.

Despite the price drop, market fundamentals for JASMY continue to improve. Long-term holders are increasing, and liquidity flow is heightening. The availability of JASMY on exchanges has hit a new low, with JASMY Exchange Reserves dropping to 10.6 billion tokens. This tightening supply often foreshadows a supply squeeze, where limited availability meets rising demand, naturally driving prices upward. However, the price movement does not currently correlate with this bullish outlook.

Technical analysis suggests that JASMY retains clear rally potential, albeit with a slight risk of dipping briefly to the red Fibonacci line at $0.01304. Historically, markets often resume upward momentum after retracing between 50% and 60%. The Fibonacci line marks some levels above, which could serve as market resistance, delaying the price from seeing further gains. Further analysis using the Global In and Out of the Money (GIOM) suggests that while these levels marked by the Fibonacci line might not be significant compared to the levels ahead, they still pose some relevance.

A major price target where selling activity has been high in the past is $0.019, where 6.06 billion JASMY has been traded, with likely more sell orders remaining at that level. This suggests that until the $0.019 level is reached, the price can continue trending higher. Liquidity flows in the market further support optimism around a price rally. Currently, the Money Flow Index, with a reading of 75.30, is tipping upward, pointing to more liquidity being channeled into the market at a healthy rate. However, if this level crosses above the 80 threshold, it could signal that a price correction is near.

The Relative Strength Index (RSI), although currently positive at 52.53, trended slightly downward, suggesting possible short-term price softness. Nonetheless, should the price indeed touch the Fibonacci support level mentioned earlier, the RSI could naturally rebound, marking the onset of renewed market strength. Overall, while the recent price drop is concerning, the underlying fundamentals and technical indicators suggest that a surprise reversal and potential rally for JASMY could be brewing in the near future.