JasmyCoin [JASMY] Drops as Large Investors Continue to Sell Holdings

In the past 24 hours, JasmyCoin [JASMY] saw a major rise in buying pressure, with its price gaining over 10%. This movement is associated with derivative

In a 24-hour period, JasmyCoin [JASMY] saw a major rise in buying pressure as its price increased by over 10%. This movement was associated with derivative traders placing long bets.

However, AMBCrypto found that other segments of the market, led by large investors, were countering this move as they continued selling JASMY, potentially impeding its future rally.

Large investors and price roadblocks force a drop

Despite bullish sentiment, large investors continued selling their holdings, rendering bearish pressure.

According to large holders’ netflow data, which tracked buying and selling activity among this cohort, there was a significant sell-off as they moved their JASMY from wallets back to crypto exchanges.

In the past 24 hours, these large holders sold a total of 16.19 million JASMY, adding to the downside pressure.

Source: IntoTheBlock

The decline was also amplified as JASMY traded into a major supply zone, marked by the In/Out of the money around price (IOMAP), which highlighted a significant concentration of sell orders.

This level ranged between $0.0215 and $0.0253, with a mid-range at $0.023, where 8,350 addresses had placed a sell volume of 11.13 billion JASMY.

In turn, this move saw the recent upward move of the cryptocurrency being reversed, forcing a downturn.

As such, AMBCrypto conducted further analysis of the chart to determine what move the token could make next.

Bullish sentiment hinges on key levels

The drop in JASMY came after it moved to a resistance level that coincided with the IOMAP level, following a breakout from the overall bullish descending line pattern that formed on the 4-hour chart.

As such, the current price drop could extend to a support level at $0.01790, forming a higher low before a major bounce to the upside, potentially reaching $0.02735 in a significant rally.

Source: TradingView

But if the price were to drop below the $0.01790 support level and decrease to as low as $0.01612, it would confirm that the bearish trend remained in place, rendering the possibility of further price decreases.

If this were to happen, the bearish trend would continue.

Derivative market holds strong

On the other hand, derivative traders remained bullish as Open Interest and trading volume showed promising momentum. Open Interest had risen by over 11% in the past 24 hours, reaching $25.85 million.

This kind of increase suggested that more derivative contracts were being unsettled.

But with buying volume outpacing selling volume as it traded above 1, it showed that these new contracts were being dominated by buyers.

Source: Coinglass

If bullish sentiment continued, then the current decline in JASMY could be forming a higher low before a strong move to the upside. Otherwise, the asset may continue its past month’s bearish streak, which saw a 43% decline.