Japan's Bitcoin, JasmyCoin (JASMY), Is at Risk of a Bearish Breakdown After Forming a Risky Pattern

JasmyCoin (JASMY) price was trading at $0.018 on Friday, up by 130% from its lowest level in April. This rebound has brought its market cap to $938 million.

JasmyCoin, popularly known as Japan’s Bitcoin, is at risk of a bearish breakdown after forming a risky pattern, and as whales continue dumping.

Cryptocurrency prices have been volatile in the past 24 hours, with major tokens such as Bitcoin and Ethereum showing minor gains, while meme coins like SHIB and DOGE have experienced substantial declines.

On-chain data from analytics firm Santiment reveals that a massive volume of Jasmy tokens has been offloaded by whales this year, while the price has dropped by 68% from its peak in December.

According to the data, the amount of Jasmy held by whales has decreased to 26.58 billion, compared to the year-to-date high of 28.45 billion.

This indicates that these large-scale investors have sold nearly 2 billion tokens since February.

output: Crypto investors typically keep an eye on whale activity because these participants are known for their more sophisticated trading strategies and ability to influence market trends.

Furthermore, there has been a surge in the volume of Jasmy tokens on exchanges in recent days.

The data shows that 15.9 billion Jasmy tokens were on exchanges, up from 15.83 billion earlier this week.

Soaring exchange balances are risky because they signal that investors are transferring their tokens from self-custody wallets to exchanges, which is usually done when investors want to sell their coins.

Started in 2016 by a team of ex-Sony employees, Jasmy is a popular cryptocurrency at the intersection of Internet of Things or IoT, blockchain, and data privacy. It offers a personal data locker, which enables users to store data from IoT devices. It also offers more decentralized data management features.

JASMY price technical analysis

The daily chart from Benzinga Pro shows that Jasmy price has bounced back strongly in the past few weeks, moving from a low of $0.00825 in April to a high of $0.018. It flipped the crucial resistance level at $0.01620, its lowest point on November 4, into a new support.

However, Jasmy has found resistance at the 200-day Exponential Moving Average. It has also formed a rising wedge pattern, a common bearish reversal sign. This pattern is made up of two ascending and converging trendlines. The MACD indicator points to a bearish divergence.

Therefore, JasmyCoin price will likely have a bearish breakout in the coming weeks. If this happens, the next first target will be at $0.01620, followed by the psychological point at $0.0010.