JasmyCoin ($JASMY) price has come under intense pressure in the past two months, leading to some substantial losses among holders. The token plunged to a low of $0.01517 on Wednesday, down by 45% from its highest point this year.
Why is the JasmyCoin falling?
Jasmy price has crashed hard in the past two months because of the ongoing crypto sell-off. Bitcoin, the biggest coin in the world, has plunged from an all-time high of $73,500 to about $57,000. Similarly, Ethereum has crashed below the key support at $3,000.
Historically, cryptocurrency prices tend to be highly correlated with each other. They typically move in sync with that of Bitcoin. For example, Jasmy token soared to a high of $0.02747 in the same period that Bitcoin reached its all-time high.
There are three main reasons why this performance is happening. First, there is the concept of buying the rumor and selling the news. Cryptocurrencies rallied ahead of the SEC approval of Bitcoin ETFs and the Bitcoin halving. They are now falling since these events have happened and there is no major scheduled event.
Second, there are concerns about the ongoing Bitcoin ETF outflows. Data shows that most funds have shed substantial assets in the past few days. The iShares Bitcoin ETF (IBIT) shed over $300 million in assets on Wednesday, its worst day on record. This trend is happening because of the ongoing performance of these coins.
Third, JasmyCoin is falling because of the stubbornly high inflation in the United States and its implication on the Fed. Data shows that the headline Consumer Price Index (CPI) rose to 3.5% in March while the PCE rose to 2.6%.
The implication of all this is that the Federal Reserve will likely not cut interest rates this year as expected. If a cut happens, it will likely be in December after the US general election. That explains why US stocks have also retreated recently.
Jasmy price forecast
Turning to the daily chart, we see that the JASMY token price peaked at $0.02747 in March as the crypto rally intensified. It has now pulled back by over 45% and is trading at $0.017. The token has moved below the lower side of the symmetrical triangle pattern, which was part of the bullish flag.
At the same time, the Relative Strength Index (RSI) has formed a bearish divergence pattern as it crashed below 94.9 to about 40. It has also retreated below the 50-day moving average. A closer look shows that the token also formed a double-top pattern.
Therefore, the outlook for the JasmyCoin token is bearish, with the next point to watch being the psychological point at $0.01.
