- JasmyCoin price has plunged by more than 35% from its highest point this year.
- The decline coincided with the ongoing Bitcoin price pullback.
- Jasmy's daily traded volume has also declined recently.
JasmyCoin, popularly regarded as Japan’s Bitcoin, has come under intense pressure after the relatively hawkish Federal Reserve decision. The coin erased some of the gains made last week and slipped to a low of $0.0048, its lowest level since January 25th. It is still down by more than 35% from its highest point in December.
Why is JasmyCoin falling?
JasmyCoin and other cryptocurrencies dropped sharply after the latest Federal Reserve decision in which the officials sounded more hawkish than expected. Bitcoin crashed to $42,500 while altcoins like ETH, XRP, and Solana fell by more than 4%.
This decline also coincided with the sharp pullback of American stocks as the Dow Jones, Nasdaq 100, and S&P 500 indices tumbled by almost 1%. In its statement, the Federal Reserve warned that it was not ready to start cutting interest rates just yet. Instead, the bank will maintain its data-dependence stance when deciding whether to slash rates.
The Fed also ruled out cutting rates in March as some analysts were expecting. Besides, the most recent economic numbers show that inflation is still high and the economy is doing modestly well. For example, data released last week showed that the manufacturing PMI rose above 50 in January while the economy expanded by 3.3% in Q4.
Jasmy price has also retreated as the recent Bitcoin rally got exhausted. After rising to almost $44,000, Bitcoin struggled to move above that. In most cases, Jasmy tends to have a close correlation with Bitcoin. Besides, Jasmy is often seen as being Japan's version of Bitcoin even though the two are fundamentally different.
Bitcoin is simply a digital currency while Jasmy is a privacy-focused blockchain project that was started by a team of former Sony executives.
Jasmy has also pulled back as its volume remains under pressure. Data by CoinGecko shows that the daily volume of Jasmy traded in exchanges rose to $22 million on February 1st. Its daily volume was over $50 million a while ago.
Jason price forecast
The daily chart shows that the $JASMY token bottomed at $0.0030 in October last year. It then jumped by over 150% as the crypto bull run continued, reaching a high of $0.0074 after the SEC approved Bitcoin ETFs. Most recently, the coin has pulled back by 35% and moved below the 50-day and 25-day moving averages.
It has also dropped below the Ichimoku cloud indicator while oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed downward. Therefore, the outlook for JasmyCoin for now is bearish, with the next key support to watch being at $0.00400.
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