- Jasmy price has pulled back sharply from its highest point in December.
- This performance coincides with the recent Bitcoin and stocks performance.
- It has formed what looks like a cup and handle pattern.
Jasmy price is having a difficult start to the year as the crypto industry enters a mini-winter after last week’s spot bitcoin approval. The $JASMY token was trading at $0.0052 on Thursday morning, 30% below its highest point since December. Other popular cryptocurrencies like Bitcoin, Ripple, and Stellar Lumens have also retreated.
Why is Jasmy in a bear market?
Jasmy token has entered a deep bear market as the recent crypto bull run loses momentum. This performance is because of last week’s decision by the Securities and Exchange Commission (SEC) to approve eleven spot Bitcoin ETFs.
While this was a positive move for cryptocurrencies, it was already priced in by market participants. This explains why bitcoin surged from less than $20,000 in January 2022 to over $45,000 recently. The crypto market cap also reached over $1.8 trillion during this rally.
Therefore, the recent price action is because investors are selling the news as they wait for the next key catalyst. It is a common occurrence where investors buy an asset before a major event and then rebound when it happens.
Jasmy price is also falling because investors have embraced a risk-off sentiment as chances of a rate cut ease. Recent economic data from the US, EU, and the UK showed that inflation remained stubbornly high in December.
In the US, inflation jumped from 3.2% to 3.4% in December. Similarly, in the UK, inflation rose back to 4% while in Europe, it jumped to 2.9%. There is also a likelihood that this inflation trend will continue in the coming months as the crisis in the Middle East escalates.
The implication of all this is that key central banks will likely maintain a hawkish tone in the coming months. This is a change of tune since most analysts were expecting them to start cutting rates as soon as in March.
These events also explain why US and global stock indices like the KOSPI, Hang Seng, Dow Jones, and the Nasdaq 100 have sold off.
Jasmy price forecast
There is also a technical reason why $JASMY price has pulled back recently. On the daily chart above, we see that the token retreated after it rose to a high of $0.0074 in December. This was an important level since it coincided with the highest point in May last year. In most cases, financial assets tend to retreat after hitting a key resistance level.
Jasmy has also formed what looks like a cup and handle pattern, which is often a sign of a bullish continuation. Therefore, there is a likelihood that Jasmy will bounce back in the coming days. If this happens, the next key level to watch will be at $0.00749, the highest point in December. A break below last week’s low of $0.0046 will invalidate the bullish view.
