After a week-long rally, which saw JasmyCoin [JASMY] jump 23.76%, the altcoin has turned bearish. In fact, it claimed the second spot among top market losers, sliding more than 7% in just one day.
It remains unclear what influenced the price drop. Moreover, trading volume concurrently shrank by 26.93% to $60.97 million, clearly highlighting weaker hands exiting the market.
Interestingly, market fundamentals continue to climb, long-term holders are increasing, and liquidity flow is heightening.
Long-term holders are on the rise
The long-term holders of JASMY appear to be growing, as the availability of the token on exchanges has kept dropping.
According to a recent chart by CryptoQuant, JASMY Exchange Reserves have dropped to 10.6 billion tokens.
This tightening supply, of course, often foreshadows a supply squeeze—where limited availability meets rising demand, naturally driving prices upward.
The outcome of this is a bullish run, gradual at first, and eventually leading to a major price jump in the coming trading sessions. However, price movement doesn’t correlate with this.
AMBCrypto has since analyzed other market metrics to determine whether the price will see a rally or not, to get a better potential narrative.
A bounce-back remains imminent
On technical charts, JasmyCoin retained clear rally potential, albeit with a slight risk of dipping briefly to the red Fibonacci line at $0.01304. This particular level marked a 50% retracement from its recent peak.
Historically, markets often resume upward momentum after retracing between 50% and 60%.
The Fibonacci line, however, 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.
For now, 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 flow supports a rally tendency
On top of that, liquidity flows in the market further supported 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.
Meanwhile, 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.