JasmyCoin, popularly known as Japan’s Bitcoin, is at risk of a bearish breakdown after forming a risky pattern, and as whales continue dumping.
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.
On-chain data by Santiment shows that JASMY whales have been on a selling spree this year, as it dropped by 68% from its highest point in December.
The supply held by whales has dropped to 26.58 billion, down from the year-to-date high of 28.45 billion. This means that these whales have offloaded almost 2 billion coins since February.
Whales have continued selling this month as its price jumped. They held 26.6 billion of the supply on May 1, which has slipped to 26.58 billion today.
Crypto investors watch whale activity because these participants are seen as more sophisticated and experienced than retail traders.
Another red flag is that the volume of JASMY tokens on exchanges has started rising in the past few days. There were 15.9 billion coins on exchanges, up from 15.83 billion earlier this week.
Soaring exchange balances is risky because it is a sign that investors are moving their tokens from self-custody wallets to exchanges. This transfer typically happens 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 shows that JASMY price has bounced back in the past few weeks, moving from a low of $0.00825 in April to $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.
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