JasmyCoin has experienced a significant downturn this month, entering a bear market phase with a decline of more than 30% from its recent highs. This movement mirrors the broader trends seen in cryptocurrencies, largely influenced by recent fluctuations in Bitcoin’s price. Bitcoin, having surged to $72,000 earlier this month, subsequently formed a double-top pattern and saw a steep decline of over 14%.
This downturn coincided with ongoing outflows from Bitcoin ETFs and the sale of thousands of Bitcoins by the German government. In addition, several Bitcoin mining firms sold off their holdings, indicating a sense of capitulation in the market. Consequently, the balance of Bitcoins on exchanges has shown a slight increase in recent days.
Moreover, there are indications that the Federal Reserve may be among the last major central banks to reduce interest rates, as US inflation rates remain stubbornly high. Meanwhile, other central banks such as the Bank of Canada, ECB, and SNB have already commenced their rate-cutting cycles.
JasmyCoin’s decline also corresponds with reduced mentions on social media and decreased trading volume. Recent data reveals that daily trading volumes for JASMY on exchanges have averaged less than $160 million, down from over $500 million earlier this month. Similarly, open interest in the futures market has fallen from $82 million on June 5th to $40 million presently.
Technically, the downturn in JasmyCoin began with the formation of a long-legged doji candlestick pattern on June 4th, often signaling a potential reversal according to technical analysis. Currently, JasmyCoin appears to be forming a bearish pennant pattern, characterized by a significant flag pole and a symmetrical triangle. Typically, this pattern suggests a potential bearish breakout upon reaching a convergence point, indicating possible further declines unless market conditions improve.
Despite these challenges, JasmyCoin has managed to stay above its 50-day moving average and key support level at $0.02757, established during its peak in March. Confirmation of further downside risk would occur if prices were to drop below this critical support level.