- JasmyCoin price retreated sharply on Wednesday.
- The sell-off was triggered by the woes of Credit Suisse.
- There are fears about the health of the banking sector globally.
JasmyCoin, the popular Japanese cryptocurrency, erased some of the gains it made earlier this week amid rising concerns about the banking sector. After peaking at $0.0058 on Tuesday, Jasmy's price drifted to an intraday low of $0.0050. It remains about 38% below the highest point this year and 14% above its year-to-date low.
Credit Suisse concerns
Jasmy was not the only cryptocurrency in the red. In fact, most large coins, including Bitcoin and Ethereum pulled back after soaring to a multi-month high. This decline was triggered by rising concerns about the banking sector.
In the past few days, the focus among investors was the health of the American banking industry following the collapse of Silvergate, Silicon Valley Bank, and Signature Bank. This fear eased on Tuesday as investors reflected on the actions of American regulators to bail out depositors.
Find out the best cryptocurrency exchanges to buy Jasmy.
On Wednesday, the fear was about Credit Suisse, one of the biggest banking groups in Switzerland. The company’s stock price plunged by over 20% as concerns about its viability continued. This event was triggered by news that the Saudi National Bank will not inject more capital in the bank.
SNB is the biggest shareholder in the company and is owned by the rich Saudi Arabia Public Investment company. This is notable since analysts believe that Credit Suisse needs to raise cash in the coming years as it implements its turnaround strategy.
The announcement came after Harris Associates, its biggest shareholder decided to sell its shares in the company. Therefore, Jasmy price is falling as investors price in more risks in the banking sector. If that happens, it could have an impact across all sectors, including stocks, cryptocurrencies, and bonds.
JasmyCoin price prediction
The four-hour chart shows that the Jasmy price formed a small double-top pattern at $0.0058. In price action analysis, this pattern is usually a bearish sign. As it dropped, it moved slightly below the important support at $0.0050, the lowest point on March 3. It has moved below the 25-day and 50-day moving averages.
Therefore, there is a likelihood that Jasmy price will continue falling as sellers target the next key support level at $0.0044, the lowest point on March 10 this year. This view will become invalid if the coin jumps above the key resistance at $0.0050.
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