Technical Analysis: Jasmy Coin Price Movements Indicate Bullish Potential

Jasmy Coin, the cryptocurrency tethered to Tokyo’s renowned IoT service provider, Jasmy Corporation, has captured the attention of technical analysts and market stakeholders. Its recent price actions have signaled potential opportunities and challenges ahead.

Our detailed analysis on August 13 revealed that Jasmy Coin successfully breached its descending trend line, a line that had been intact since May 5, 2023. This former resistance line has now transitioned into a potential support level. However, there are hurdles to overcome. 

As we pointed out before, anticipating a potential bull run for the remainder of 2023, Jasmy Coin would suffer a correction to confirm the trend reversal. The wider cryptocurrency market felt the shockwaves of Bitcoin’s downturn on August 17. Consequently, Jasmy Coin’s valuation dipped below its June 20 price levels. 

Nonetheless, the coin showcased resilience, rallying to challenge the aforementioned descending trend line for a fourth consecutive time. As of now, Jasmy Coin stands above the descending trend line and hovers near the 99-day MA, which sits around the $0.0039 mark. If Jasmy Coin manages to sustain above these technical levels, it could set the stage for a bullish trend, offering lucrative returns for traders and investors.


Source: Binance

Technical Barriers: Double Top and Long-term Indicators

As pointed out before, earlier in 2023, Jasmy Coin registered two prominent price peaks. The initial surge peaked at $0.008364 on February 8, and the subsequent one, a tad lower, at $0.007967 on May 5. These levels, forming a classic “double top” pattern, are crucial resistance zones. A rally that revisits these levels could potentially yield returns approaching 100%. However, traders must exercise caution. Cryptocurrencies, with their inherent volatility and pronounced correlation to Bitcoin’s price fluctuations, are unpredictable. A bearish trend in Bitcoin might temper Jasmy Coin’s bullish aspirations.

Another significant technical level to monitor is the 55-week Moving Average (MA), which marked the climax of Jasmy Coin’s previous bullish cycle. It is currently stationed around the $0.005 mark, representing a pivotal long-term bullish indicator.

About JasmyCoin

Jasmy Coin pioneers the integration of IoT and blockchain, aiming to optimize data interchange between service providers and end-users. With the power of edge computing and IPFS, Jasmy champions data democratization, fortifying data security, endorsing user data sovereignty, and enabling service providers to harness user-centric data.

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Is Shiba Inu overheating after SHIB price gains 75% in two weeks?

Shiba Inu (SHIB) looks poised to undergo sharp price corrections after rallying nearly 75% in almost two weeks.  

SHIB price rallied to mid-January highs 

On Monday, the meme-token climbed to $0.00002961, its best level since Jan. 18, amid renewed buying interests across the cryptocurrency market. Before the retracement, SHIB’s price had crashed by almost 80% from its record high of $0.00008870.

Nonetheless, the wild price recovery also came closer to triggering two classic sell signals. First, SHIB’s daily relative strength index (RSI), a technical indicator that fluctuates in the range between 0 and 100 to signal whether an asset is overbought (RSI>70) or oversold (RSI<30), showed nearly-overbought conditions after rising to 60.

Last, SHIB’s daily relative volatility index (RVI), which measures the standard deviation of low and high prices, dropped below 50, a sell signal. In a “perfect” scenario, traders close their long positions after the RVI drops below 40. At press time, it came out to be near 48.

SHIB/USD daily price chart featuring RSI and RVI signals. Source: TradingView

Additional bearish signals

More cues for a possible SHIB price correction came from three other technical indicators. First, the Shiba Inu token’s current upside momentum showed signs of weakening near its 50-day exponential moving average (50-day EMA; the red wave in the chart below), at around $0.00002761.

Second, the SHIB price’s ongoing uptrend accompanied lower volumes, i.e., they came out to be nowhere closer to the volumes witnessed during the token’s October 2021 price rally. That showed scant liquidity in the Shiba Inu market, making it harder for traders to execute buy and sell orders at desired levels.

As a result, a lower liquid market tends to witness wilder price swings in either direction.

SHIB/USD daily price chart. Source: TradingView

Third and last, SHIB price neared a key pullback level of $0.00003358 that coincided with the 0.618 Fib line of the Fibonacci retracement graph drawn from the $0.00000507-swing low to the $0.00007971-swing high. In conjugation with alarmin RSI and RVI reading, the $0.00003358-level posed as an ideal derisk zone for traders looking to secure interim profits.

Short the SHIB rally?

Norok, an independent market analyst, wrote that the latest SHIB price rally has brought out “excellent short opportunities.” He cited a fractal from November 2021 that showed SHIB undergoing a fake recovery rally of nearly 42% in two days but followed it with a 70% downside move later.

SHIB/USD daily price chart. Source: Norok, TradingView

“Each rally, far from being the fresh breath of hopium owners desire, has provided excellent short opportunities for months,” Norok explained, adding:

“This one is a clear pullback to test and hold Resistance and a good opportunity to add to the short where profit was taken at the start of January.”

The statements appeared as bearish positions lost millions of dollars during the recent SHIB price recovery. For instance, data from Coinglass showed over $10 billion worth of liquidations for traders of Shiba Inu-backed investment products, out of which around 75% were short entries.

Nonetheless, Binance’s 1000SHIB futures product, which holds 1,000 Shiba Inu tokens per contract, looked slightly skewed toward bears, with its long/short ratio coming out to be 0.93 on a 24-hour adjusted timeframe.

In detail, the Long/Short Ratio represents the amount of net long positions opened against the net short positions opened. A reading above 1 indicates that most open market positions are skewed long. Conversely, a reading below 1 indicates that the market bias is currently skewed toward shorts.

1000SHIB Long/Short Ratio. Source: Coinglass

Meanwhile, the long/short ratio of SHIB futures on FTX also was near 0.97, suggesting the market’s bearish outlook on a 24-hour adjusted timeframe.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.