JASMY Surges 14% – Is a Target of $0.0104 Feasible Given These Risks?

JasmyCoin (JASMY) has recently experienced a significant increase of 14%, making it one of the leading performers in the cryptocurrency market. The surge is largely attributed to investor optimism, with over 80% of holders expressing a bullish outlook. However, while momentum indicators show a positive trend, derivatives data suggests caution.

Key Takeaways

Recent Performance: JASMY has risen by 14%, driven by positive investor sentiment.
Momentum Indicators: The Relative Strength Index (RSI) and Average Directional Index (ADX) indicate a strengthening upward trend.
Price Levels to Watch: The potential target of $0.0104 could represent a roughly 10% gain from current levels.
Caution from Derivatives Market: A bearish trend in perpetual contract trading could limit upward potential.
Broader Market Conditions: Positive market conditions and investor sentiment could boost JASMY even further, with potential highs of $0.0257.

JASMY Shows Strong Momentum

The market is witnessing an impressive bullish trend as JasmyCoin (JASMY) has gained 14% recently. This surge in value reflects strong investor confidence, with over 80% of its holders maintaining a positive outlook on the asset's future.

Indicators Align for Bullish Trend

The bullish momentum is further validated as various indicators show a clear alignment. The Relative Strength Index (RSI), which helps assess momentum and identifies overbought or oversold conditions, remains on the positive side. Currently, it hovers near the 70 mark but has started to trend slightly downward, a movement generally seen as healthy during prolonged upward trends.

Jasmy technical indicator
Source: TradingView

As long as the RSI stays between 50 and 70, there is a high probability of further price increases. The strength of this trend is also confirmed by the Average Directional Index (ADX), which indicates that the current upward movement is gathering momentum.

Key Levels to Monitor

Liquidity data offers further insight into the potential extent of this rally. Analysis of the liquidation heatmap reveals multiple clusters, particularly around the $0.0104 mark. These concentrations represent zones of unfilled orders that can attract price movement.

Jasmy liquidation chart
Source: CoinGlass

With the current bullish sentiment, JASMY may likely target this price level. Moving from the current price of $0.0091 to $0.0104 translates into about a 10% gain for reasonable entrants. The overall outlook appears positive, bolstered by robust momentum, a wider altcoin rally, fluctuating capital inflows, and improving market sentiment, potentially pushing prices up to $0.0257.

This bullish scenario is further strengthened by the recent breakout above a diagonal resistance line, a technical signal that has historically led to significant upward price movements.

JASMY price chart
Source: TradingView

Caution: Derivatives Data Signals Potential Risks

Despite positive sentiment in the spot market, derivatives data indicates a more cautious outlook. The trading activity in JASMY's perpetual contracts shows that a considerable number of traders maintain a bearish stance, which could cap potential upside in the short term.

The Open Interest Weighted Funding Rate, which reflects the balance of long versus short positions, demonstrates this bearish trend. Currently, the Funding Rate stands at 0.0181% and is trending downward, pointing to a predominance of short positions.

Jasmy open interest weighted funding rate
Source: CoinGlass

Should bearish positions dominate capital inflows into JASMY contracts, downward pressure could emerge. While spot market momentum remains optimistic, the dynamics in the derivatives sector should be closely monitored.

Conclusion

In conclusion, while JasmyCoin's recent price surge reflects positive market sentiment, investors should remain aware of the potential risks indicated by derivatives data. As the market evolves, close monitoring of these indicators will be essential to navigate the complexities of JASMY's performance.