JasmyCoin price has lost momentum in the past two months as investors waited for the next catalyst after the SEC ETF approval and the recent Bitcoin halving event. Like other cryptocurrencies, JASMY has not moved in a well-defined trend. Instead, after peaking at $0.027 on March 4th, the token has dropped by about 32% to the current $0.018.
Interest rates are set to fall
Jasmy, popularly known as Japan’s Bitcoin, tends to have a close correlation with Bitcoin. It jumped to its highest level this year as Bitcoin spiked to a record high of over $73k. Most recently, the token crashed to $0.015 last week as BTC moved to about $56,000. It has now rebounded by over 20% from its lowest point this month.
The next potential catalyst for Jasmy and other cryptocurrencies will come from central banks, which will likely start cutting interest rates. The rate-cutting cycle has already started. On Thursday, the Brazilian central bank slashed rates from 10.75% to 10.50%.
On Wednesday, Riksbank, the world’s oldest central bank, cut rates by 0.25% to 3.75%. It also pointed to two more cuts later this year.
Other central banks are expected to start cutting rates too. The Bank of England (BoE) is not expected to slash interest rates when it completes its monetary policy meeting on Thursday. Nonetheless, it will likely point to a rate cut as soon as June this year.
The European Central Bank (ECB) will also start slashing rates in June. There is also a possibility that the Fed will start cut rates later this year now that the economy is slowing. Data released last week showed that consumer confidence and manufacturing output slumped.
Rate cuts have implications for assets like Jasmy since they do well when central banks have a dovish tone. Also, these cuts will likely see money move from money market funds (MMF) to alternative assets like stocks and cryptocurrencies. MMF funds now have over $6 trillion in assets as investors seek to benefit from higher rates.
Jasmy price forecast
Turning to the daily chart, we see that the $JASMY token formed a small hammer pattern last week, leading to a bullish reversal. It has now risen from a low of $0.015 to $0.018. It has remained above the 100-day Exponential Moving Average (EMA).
A closer look shows that the token has formed a symmetrical triangle pattern, which has more room to go to get to its confluence level. This triangle is likely part of a bullish pennant pattern.
At the same time, the volume has crashed hard from March while the volume delta indicator is consolidating at the neutral point. Therefore, the outlook for the token is neutral for now. The key points to watch will be last week’s low of $0.015 and $0.020.
A drop below the support at $0.015 will point to more downside, with the next point being at $0.010. On the other hand, a move above $0.02 (May 5th high) will signal more gains ahead.
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