Analyzing Jito’s [JTO] ‘death cross’ – Is a bigger dip ahead?

• Jito depicted a strong bearish edge as its price struggled to jump above key resistance levels.
• The 50 EMA fell below the 200 EMA to confirm a death cross on the daily chart. But the RSI’s higher lows bullishly diverged with the price.

Jito [JTO] continued its downtrend below its 20, 50, and 200 EMAs after reaching its seven-month high in December 2024.

The altcoin found a high liquidity region between the $2.3-$3.2 range, yet recent market uncertainties caused further sell pressure.

The altcoin was hovering near the $2.0-$2.1 mark at the time of writing.

Will the recent bullish divergence propel a near-term bounce?

JTO’s price has consistently formed lower highs since December, indicating a sustained downtrend in its price action.

The nearest dynamic resistance is the 20 EMA at $2.21, where a daily close above could signal momentum shifting.

A “death cross” occurred as the 50 EMA ($2.63) dropped below the 200 EMA ($2.53), confirming a bearish bias.

If bears breach the $2.1–$2.4 range, the next significant support level lies between $1.86 and $1.88. At press time, the RSI was around 47, below the neutral 50 mark, although registering higher lows despite price forming lower lows.

This bullish RSI divergence suggests a potential recovery or relief bounce from the current support level. If bulls hold the $2.3 support, it may validate the RSI divergence. Failure could drag JTO toward the $1.86 range.

Derivatives data revealed this

Per Coinglass data, JTO’s Open Interest (OI) surged nearly 89% to $51.21M over the past day. On the other hand, volume climbed by 92% during this period, suggesting traders were positioning for volatility.

The overall Long/Short Ratio hovered around 0.98–1.10 across various exchanges, indicating a near-even split of bullish vs. bearish bets. However, top traders on Binance showed a slight tilt toward long positions.

The Funding Rates hovered near neutral to slightly negative, indicating shorts are paying longs and suggesting mild bearish market sentiment.

If long positions increase with neutral/negative funding, a short squeeze could occur if prices begin to rise. 

However, persistent negative funding and failure to reclaim key EMAs may lead to the continuation of JTO’s downtrend.