JasmyCoin (JASMY) remained one of the best performing assets in the market, posting a moderate 10% gain at press time as buying pressure continues to build.
This latest move has broader significance, as JASMY has now recovered all losses recorded since January 23, completing a recovery that took around three months. This development indicates strengthening market sentiment and reinforces the broader bullish structure forming around the asset.
Yet despite the sustained rally, several indicators suggest the market could be approaching an important decision point.
JASMY faces pressures in key sourcing area
The main risk to JASMY’s ongoing rally comes from its current position within a major supply order block on the chart.
A supply order block represents a region where concentrated sell orders typically emerge, often slowing momentum or triggering temporary reversals as traders begin to take profits. JASMY’s move through this area has already produced early signs of selling pressure, with a red candlestick forming as sellers reacted near resistance levels.
The current price action suggests that the asset could move back towards the first support region, where buyers could attempt to regain control and resume the uptrend. If bearish pressure intensifies, price could decline to a secondary support level before finding greater stability.
However, a successful breakout above the supply zone could open the way for higher resistance targets around $0.00814, while a broader continuation of the rally could extend up to $0.00983.
Momentum remains strong despite overvaluation signals
Although several indicators suggest that JASMY is now trading above its fair value, the bulls continue to maintain control of the market structure.
The Bollinger Bands indicator, commonly used to identify overbought and oversold conditions, showed JASMY climbing into the upper volatility band at the time of writing, a region historically associated with overheated price conditions and short-term pullbacks.
In previous cases, similar movements in the upper Bollinger band were followed by temporary corrections as momentum cooled.
Despite this, purchasing activity remains high. The Bull Bear Power (BBP) indicator continued to support bullish momentum, showing that buyers are still dominating the broader market activity.
The indicator, which tracks the balance between bullish and bearish pressures, recently formed its strongest green histogram bar since January 9. The move highlights aggressive buyer participation and suggests traders are still expecting further upside in the near term.
Perpetual traders begin to position themselves defensively
Although spot market sentiment remains largely bullish, activity in the perpetual futures market reflects increasing caution on the part of derivatives traders.
At the time of writing, Open Interest has climbed 32% to nearly $33 million, indicating a significant increase in leveraged positioning around the asset.
At the same time, the funding rate turned negative and declined sharply to 0.0276%, signaling that short positions are beginning to dominate perpetual market activity.
A negative funding rate generally reflects growing bearish sentiment among leveraged traders as short sellers increasingly pay premiums to maintain bearish positions. If selling pressure accelerates alongside increasing leverage, JASMY may face increased volatility in the coming sessions.
Final summary
- JASMY prices have rebounded, but growing resistance at a key supply area and growing short selling activity in the perpetual market could threaten the rally.
- Indicators suggest that the asset is trading at excessive levels, but the bullish momentum remains firm.
