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JasmyCoin, often referred to as “Japan’s Bitcoin,” is showing signs of a potential bearish breakdown following the formation of a risky price pattern. In addition, whale activity indicates continued selling pressure, raising concerns for investors.

JasmyCoin Price Trends and Market Cap

As of Friday, the JasmyCoin price was trading at $0.018, representing a significant rebound of 130% from its lowest level in April. This rally has pushed JasmyCoin’s market capitalization to $938 million. However, the upward momentum is clouded by on-chain data suggesting heavy selling by whales.

Whale Activity Signals a Bearish Outlook

On-chain data reveals that JASMY whales have been actively reducing their holdings throughout 2023. The supply held by these large investors has dropped to 26.58 billion coins, down from a year-to-date high of 28.45 billion in February. This indicates that whales have sold nearly 2 billion coins during this period.

The trend has continued into May, with whale holdings slipping slightly from 26.6 billion on May 1 to 26.58 billion. This sustained selling pressure by whales, who are generally considered more experienced and strategic investors, could signal a bearish outlook for the token.

Rising Exchange Balances Raise Red Flags

Another concerning trend is the rising volume of JASMY tokens on cryptocurrency exchanges. Exchange balances have increased to 15.9 billion coins, up from 15.83 billion earlier in the week. This shift typically occurs when investors move coins from self-custody wallets to exchanges, often as a precursor to selling. This development adds to the bearish sentiment surrounding JasmyCoin.

Understanding Jasmy’s Unique Offering

Launched in 2016 by a team of former Sony employees, JasmyCoin operates at the intersection of blockchain, the Internet of Things (IoT), and data privacy. The project aims to empower users by providing tools like a personal data locker, which securely stores data from IoT devices, along with decentralized data management solutions. Despite its innovative approach, the current market dynamics suggest challenges ahead for its token.

Technical Analysis of JasmyCoin

The daily price chart for JASMY highlights a notable recovery from its April low of $0.00825 to $0.018. During this rebound, the token managed to flip a critical resistance level at $0.01620, which had previously served as support since November 4. However, further gains have been capped by the 200-day Exponential Moving Average (EMA), a key resistance point.

Additionally, JasmyCoin has formed a rising wedge pattern, which is a common bearish reversal signal. This pattern consists of two ascending and converging trendlines. The MACD (Moving Average Convergence Divergence) indicator further supports this bearish outlook with a divergence forming.

If the bearish breakout materializes, the first potential support level is at $0.01620, followed by the psychological level of $0.0010. Investors are advised to monitor these levels closely as the market evolves.

Key Takeaways for Investors

For those interested in cryptocurrency investing, monitoring whale activity and exchange balances can provide critical insights into market sentiment. The recent selling spree by JASMY whales and the rising exchange balances suggest caution for both short-term and long-term investors.

  • Keep an eye on key support levels, including $0.01620 and $0.0010, for potential price action.
  • Monitor on-chain data, such as whale holdings and exchange balances, to gauge market sentiment.
  • Understand the fundamentals of Jasmy’s IoT and data privacy solutions to evaluate its long-term potential.

As the cryptocurrency market remains volatile, staying informed about both technical patterns and on-chain metrics can help investors make more strategic decisions.

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