Jasmy price surge indicates a potential local top formation.
Technical analysis suggests that JASMY is forming a bearish divergence on a momentum indicator.
A daily candlestick close above $0.044 would invalidate the bearish correction thesis.
Jasmy (JASMY) price looks set to fall in the short term, dragged by a wave of profit-taking from investors after last week's 75% rally.
Jasmy price poise for a correction
Jasmy price shot up 75% between May 30 and June 4. Due to this sharp move to the upside, JASMY holders could book profits, leading to a pullback. Additionally, the higher highs formed since June 1 do not reflect the Relative Strength Index’s (RSI) lower highs for the same period. This development is termed a bearish divergence and often leads to the reversal of the trend or a short-term correction.
If this selling pressure sustains, Jasmy price could breach the immediate weekly support level at $0.0367 and revisit the $0.033 support level, which is the midpoint of the 75% rally witnessed between May 30 and June 4. In some cases, JASMY could dip as low as $0.0292 to $0.0255, which is the imbalance formed in the initial stages of the 75% impulsive move.
JASMY/USDT 4-hour chart
However, if the Jasmy price produces a daily candlestick close above the $0.044 daily resistance level, with the RSI also producing a higher high, it would denote the start of a new uptrend. This move would propel JASMY by 12% to revisit the $0.049 weekly resistance level.
