Jasmy price forms a risky pattern: can it fall 22%?

JasmyCoin’s price fell sharply on Tuesday after forming a double-top formation and amid changing sentiment in the crypto market.

JasmyCoin (JASMY) fell 11.45% from Monday’s high to an intraday low of $0.035.

The collapse coincided with declines in the broader crypto market. As Bitcoin (BTC) falls below $100,000, previously hot tokens and meme coins have cooled off.

Jasmy, often referred to as the Bitcoin of Bitcoin, has fallen as the momentum of the futures market has waned. Their open interest in futures rose above $66 million on Monday and fell to $61.45 million on Tuesday. Open interest has remained in a narrow range in recent days.

On-chain metrics also paint a bearish picture, with network growth slowing and large transactions dropping by 10%. The number of large transactions dropped from 387 to just 29 in December, according to IntoTheBlock data.

Jasmy large number of transactions | Source: IntoTheBlock

Additional data from IntoTheBlock shows that new and active addresses decreased by 1.27% and 15%, respectively, over the past seven days. This indicates that the demand for cryptocurrency is decreasing.

Jasmy price creates a risky formation Jasmy chart | Source: crypto.news

JasmyCoin’s recent price action shows a risky double-top pattern at $0.041. A double top pattern occurs when an asset reaches twin tops with a neckline; In this case, this level is at $0.031. This is often seen as a sign of a potential reversal.

JasmyCoin fell below both the 50% Fibonacci retracement level and the 50-period moving average. It is also trading near the bottom of the Murrey Math Lines range.

There is a risk that the token will fall to $0.028, which is the key support level last seen on December 20. This scenario will be confirmed if JasmyCoin breaks below the ascending trend line connecting the lows on December 20 and January 1.

The bearish view will be invalidated if JasmyCoin breaks above $0.041. A break above this level could open the door to more gains, with $0.050 the possible target at the 23.6% retracement level, which represents a 38% increase from current levels.