The price of JasmyCoin has broken below a key 12-month support level last week, with this support now flipping to resistance and preventing the price from making any further advances.
Matthew Dixon, a veteran financial trader, highlighted this significant technical development in his recent market commentary. Dixon pointed out that JASMY dipped below long-held underlying support, which then transformed into overhead resistance, creating a barrier to higher prices for the time being.
As a result, the outlook for JASMY has turned negative. Dixon emphasized that this situation clearly demonstrates the importance of using risk/reward principles in trading to minimize losses and maximize potential gains.
Technical Breakdown
The daily timeframe chart from Coinbase shows JASMY’s price action against the US Dollar with key technical indicators including the Relative Strength Index (RSI) and important support/resistance levels.
JASMY has decisively broken below a long-established support level of approximately $0.015. This level had previously acted as a floor for the price over the past year. What makes this development particularly concerning for bulls is that this former support has now transformed into resistance. This technical pattern typically indicates that price movements will face significant challenges when attempting to push back above this level.
A clear descending trendline can be observed from the peak in late 2024, with the price consistently forming lower highs and lower lows. This price action strongly suggests that sellers are firmly in control of the market, further reinforcing the bearish outlook for JASMY.
Following the breakdown, JASMY made several attempts to recover but was firmly rejected at the new resistance zone between $0.0155 and $0.016. These rejections serve as additional confirmation that the former support is now acting as strong resistance.
The Relative Strength Index (RSI) currently sits at 37.13, which is slightly above the oversold threshold of 30. This technical reading suggests that while JASMY is experiencing weakness, there may not yet be sufficient bullish momentum in the market to reverse the prevailing downtrend.
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Potential Price Targets for JASMY
If JASMY continues to trade below the current resistance level, the price could test lower support levels, potentially heading towards the $0.010 to $0.012 range and potentially as low as $0.007. For any bullish reversal to gain credibility, JASMY would need to reclaim the $0.016 level, which could shift the market bias back to neutral or even bullish.
Traders should carefully consider their risk management strategy before entering any positions, ensuring that stop-losses are placed strategically to protect capital.
Those looking for signs of a potential reversal should monitor for the formation of higher lows, increasing bullish volume, or the RSI climbing above the 50 level, which would indicate growing strength in any price recovery.
For the time being, JASMY appears to be in a weak position, and traders should approach with caution, not expecting a near-term recovery unless the cryptocurrency can successfully reclaim key resistance levels.
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