A range formation with the highs at $0.0244 is still possible, and participants should factor this possibility in.
- JASMY seemed to have a bullish daily market structure on the charts A range formation may be a possibility
JasmyCoin [JASMY] has gained by 20.6% since the lows of Monday, 23 September. It flipped the daily structure bullishly, but traded at a key resistance zone. A Bitcoin [BTC] retracement could reset the gains JASMY made.
The technical indicators favored a bullish outlook for the token. The short-term sentiment was also expectant of sustained gains, but some caution among swing traders may be warranted.
Volume worries for the bulls
Source: JASMY/USDT on TradingView
Over the past few days, the trading volume bars were above average compared to the past two months, but still minimal compared to the rally in late May. The Money Flow Index was at 76 and highlighted strong upward momentum and buying pressure, but it only takes into account the last 14 days of trading.
Hence, the buying pressure may be relatively higher, but not absolutely higher when compared to periods of a strong trend like February or May. This can be worrisome, because the price approached a key resistance level at $0.0244 that has been in place since early August.
The Fibonacci levels showed that $0.0265 and $0.03 would also be pivotal resistances should JASMY manage to breakout. However, the moving averages continued to show long-term bearish momentum – A breakout is vital for the bulls to flip the downtrend.
High spot demand to boost JasmyCoin
Source: Coinalyze
The Open Interest and the spot CVD were increasing rapidly since last Monday, and especially over the past 48 hours. Together, they denoted bullish conviction in the spot and Futures market.
The technical and price action clues were bullish, but also underlined that swing traders and investors should be cautious. A range formation with the highs at $0.0244 is still possible, and participants should factor this possibility in before making their plans.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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