JASMY drops 7% – Will bulls defend key support or risk a 15% slide?

• JASMY appeared to be at a critical level on the charts at press time
• Market sentiment has been mixed lately, with investors divided between bullish and bearish expectations

JasmyCoin [JASMY] is in the news today after it recorded significant losses over the last 24 hours, with the token losing 7.1% of its value according to CoinMarketCap.

In fact, an analysis of the asset’s price action revealed that JASMY may be at risk of either extending its losses or bouncing from its press time level. AMBCrypto broke down what key market factors may influence the altcoin’s next move.

JASMY hits key support after daily drop

JASMY’s decline over the last 24 hours was triggered by a rejection at the descending channel’s resistance.

In fact, the asset has now dropped into a critical support zone at $0.0124 within the same channel. This zone could potentially reverse the prevailing downtrend, possibly triggering a breakout from the channel.

However, if the support breaks, JASMY may drop by 15% towards $0.0120, or fall further to $0.00822 – Marking a 27% decline.

JASMY’s next move will largely depend on whether it holds this support or breaks below it, resulting in another leg down.

Technical indicators flash bearish signals

At the time of writing, the altcoin’s technical indicators hinted at more downside for JASMY in the coming sessions. For example – The Relative Strength Index (RSI) fell to 41.81, dipping into the bearish zone.

The bearish zone on the RSI is typically between 30 and 50 and it has historically correlated with market downtrends.

Similarly, the Chaikin Money Flow (CMF) turned negative too, dropping to -0.06 on the charts. Here, the CMF measures buying and selling pressure based on volume flow. A negative reading indicates that selling volume has been dominating buying activity.

Such a combined drop in both the RSI and CMF hinted at greater selling pressure, a sign that JASMY’s price could continue to fall.

Will bulls defend support or is another breakdown coming?

Despite these bearish technicals, however, the spot and derivatives markets hinted at bullish sentiments.

In fact, data from CoinGlass revealed that JASMY has seen positive exchange netflows over the past 24 hours. $235,000 worth of tokens moved from exchange wallets to private wallets.

This trend is a sign of accumulation, one that has helped JASMY hold its press time support.

In the derivatives market, bullish sentiment seemed to be pretty evident too. The Open Interest Weighted Funding Rate returned to positive territory for the first time in a while. Its press time reading of 0.0009% implied that long positions have been gaining dominance lately. 

If accumulation in both spot and derivatives markets continues, it may help JASMY retain its press time support or even trigger a stop-hunt scenario, liquidating shorts before a reversal rally.

However, if selling pressure continues to dominate, JASMY could see a broader price decline to the previously projected levels.