JasmyCoin (JASMY) price prediction: is this a strong rebound or a dead cat bounce?

Cryptocurrency prices have started the week well, with Bitcoin soaring above $62,000 for the first time since July 2nd.

Bitcoin price started the week strongly, soaring above $62,000 for the first time since 2th July. It has now rallied for four consecutive days and risen by close to 20% from its lowest point this month.

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This rally comes as Germany’s Saxony state finally concluded dumping its Bitcoin holdings in exchanges and is now left selling them.

Bitcoin’s rally sparked a double-digit rebound in most altcoins, including BILLY, Michi, Mother Iggy, and JasmyCoin (JASMY). Our crypto chart of the week is Jasmy, which is approaching a crucial technical level.

JasmyCoin formed a hammer chart pattern

JASMY price chart. By TradingView

The first key highlight is that the Jasmy token formed a hammer chart pattern whose lower wick touched down at $0.0193. Notably, a hammer is among the most bullish candlestick patterns in the markets.

When it forms, it usually suggests that an asset in a free-fall is about to experience a bullish reversal, explaining the token’s rebound. The lowest point of the hammer also coincided with the 61.8% Fibonacci Retracement level.

The other key technical aspect is that Jasmy is approaching a significant resistance level at $0.02757, which was its highest point in March 2024. This was also a crucial level as it sits at the first support line of the Andrew’s pitchfork tool.

Hence, a move above that level will be signaling more upside for the Jasmy token, with the next point to look out for being the 23.6% retracement level at $0.35. If it happens, the token will have risen by close to 30% from its current level.

JASMY price technical indicators

In the meantime, the daily chart shows that the JASMY token crossed the 100-day Exponential Moving Average (EMA). It also met some resistance at the 50-day moving average. This recovery will be confirmed if the JASMY token price rises above the 50-day MA.

Meanwhile, the oscillators are all pointing up. The Relative Strength Index (RSI) moved from the oversold level of 39 and has approached the neutral level of 50. The RSI is a key oscillator that measures the rate of change in an asset. A rising RSI usually indicates that an asset is gaining bullish momentum.

The Stochastic Oscillator, on the other hand, surged and is approaching the overbought level of 80. Like the RSI, the stochastic oscillator is a momentum tool that rises when an asset gains strength.

However, the Average Directional Index (ADX), which is among the most popular trend oscillators, pointed down. A trend is said to be strong when the ADX indicator moves above 20 and is pointing up. The volume indicator shows that it has been falling over the past weeks, which is a bearish sign.

Trading considerations for the Jasmy token

Therefore, these data points paint a varying outlook for the JASMY token. While this could be a strong rebound, there is also a risk that it could be a dead cat bounce. In price action analysis, a dead cat bounce is a scenario where an asset briefly rebounds and then resumes the downward trend.

In this case, the next crucial level to watch will be at $0.02747, which was its highest level on 4th March. A volume-supported move above that level will be signaling more upside, with the next point to watch being the psychological level at $0.030.

The alternative scenario is where the JASMY token price resumes the downward trend if Bitcoin loses momentum. If this happens, the token will likely drop to the key support level at $0.020.

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