Main Takeaways:-
- JASMY experienced the highest surge in the market, following massive large-scale investor accumulation led by Binance.
- Liquidity flow indicates that other market users are expecting the asset to fall from its current price.
Whales Stake on a JASMY Price Surge
Whales who maintain adequate liquidity powered JASMY’s surge by buying tokens from the market.
According to Arkham Intelligence reports that four whales impacted the price surge, including Binance, Bybit, Bitturk, and Bitvavo. As a combination, these whales purchase $8.47 million worth of JASMY from the market.
In reality, Binance has grown into a significant investor in JASMY. The group owns 9.2% of its present supply, at present which is valued at $72 million.
When big investors hold a large amount of an asset, it can either boost market confidence or cause worry, resulting in a sell-off.
How Retail Investors Can Bounce Back
Exceeding whale buying, the daily chart indicated that JASMY’s current surge observed the asset trading into a market inefficiency, which essentially indicates a point of demand, creating a new daily peak.
For the price to keep rising, the asset must break through the resistance at $0.01615. If it does, it could increase by 97%, reaching $0.03196.
But that is not the only thing that could happen. As the chart indicates, JASMY might also fall back into the fair value gap (FVG) to build strength, then try again to break the resistance and move toward the aimed price.
This increase to the aimed level is likely to happen because of the liquidity zone highlighted in the chart with the blue curved line. This level might have leftover buy or sell orders that the market can use to help push the price higher.
Technical indicators advised to the investors are more expected to offload after building up. First, the Money Flow Index (MFI), which calculates the liquidity inflow and outflow, indicates that buyers are on the verge of burnout.
This situation happens when the MFI breaks into the overbought area of 80.00. At the reporting time, it shows a value of 76.82. Once the momentum slows down, prices usually drop because there is less money or buying power to preserve the upward momentum.
In the same way, the Relative Strength Index (RSI) shows a value of, presently dropped at 56.80. If the RSI declines below 50, JASMY is expected to drop, matching the second situation shown in the previous chart.
Other Market Segments Experience a Sell-off
The market has shifted against long positions as shorts prevail. Presently, sellers are paying additional fees to buyers.
This trend happens when the market favours short positions, with more contracts being opened. If the funding rate keeps falling, JASMY will probably continue to go down.
In general, whale accumulation might not impact JASMY much if other parts of the market do not start buying the asset again.
Read also:- BTC Hits $87,000: Too Soon to Call a Bull Market, Say Experts
Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
