JasmyCoin surges 15% in 24 hours amid mixed market signals

JasmyCoin, a prominent altcoin, has experienced a significant surge of 15% in the past day, pushing its monthly gain to 62%. This rally reflects a continued bullish sentiment in the market. However, the situation is not as straightforward as it seems. Market data reveals conflicting signals, with 9 out of 15 exchanges showing higher selling volume than buying in the past 24 hours, making the altcoin's next move uncertain.

There has been a notable increase in liquidity entering the derivatives market over the last 24 hours. According to CoinGlass, $8.42 million in new capital flowed into JASMY’s derivatives market, a 14% increase in Open Interest, which stood at $56.86 million at press time. Open Interest measures the total dollar value of unsettled contracts in the derivatives market over a period. A surge typically suggests more contracts are being opened and is often interpreted as a sign of renewed market participation. While this might appear bullish, especially in light of the price rally, a more complex dynamic is at play.

Despite the liquidity inflow, data indicates a bearish tilt. According to the Long-to-Short ratio data, which tracks the distribution of volume in derivatives markets, only 48% of contracts were long while 52% were short during this period. Interestingly, 9 of the 15 centralized exchanges tracked showed more buying than selling volume. Yet, overall, short volumes dominated. This suggests that sellers drove most of the liquidity flowing into JASMY contracts, hinting at a possible short-term pullback. Adding to the pressure, spot investors also engaged in moderate sell-offs, totaling approximately $2.86 million worth of JASMY. If this trend continues, the pullback could extend deeper than expected.

If derivatives show higher selling pressure, why has JASMY continued to rally? Broad market sentiment remains bullish. For instance, the derivatives market still shows a positive Funding Rate of 0.0131%, indicating that long-position holders are paying a premium—typically a sign of ongoing bullish trends. Additionally, the Open Interest Weighted Funding Rate—which combines both Open Interest and Funding Rate for a more accurate signal—remains in positive territory and at a relatively high level. This suggests that while JASMY may temporarily cool off from its recent 15% rally, it is likely to resume an upward trend in the short to medium term.