JASMY recovers 3-month losses – Why price reversal risk is rising

JasmyCoin [JASMY] has remained one of the stronger-performing assets in the market, posting a moderate 10% gain at press time, as buying pressure continues to strengthen.

The latest move carries broader significance because JASMY has now recovered every loss recorded since the 23rd of January, completing a recovery that took roughly three months. The development points to strengthening market confidence and reinforces the broader bullish structure forming around the asset.

Still, despite the sustained rally, several indicators suggest the market may be approaching an important decision point.

    AD

JASMY faces pressure at key supply zone

The primary 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 profit. JASMY’s move into this zone has already produced early signs of selling pressure, with a red candlestick forming as sellers reacted near resistance levels.

Source: TradingView

Current price action suggests the asset could retrace toward the first support region, where buyers may attempt to regain control and resume the uptrend. If bearish pressure intensifies, price could extend lower toward a secondary support level before finding stronger stability.

However, a successful breakout above the supply zone could open the path toward higher resistance targets around $0.00814, while a broader continuation rally may extend toward $0.00983.

Momentum remains strong despite overvaluation signals

Although several indicators suggest JASMY may now be trading above its fair value, bulls continue to maintain control of the market structure.

The Bollinger Bands indicator, commonly used to identify overbought and oversold conditions, showed that JASMY has climbed into the upper volatility band as of writing, a region historically associated with overheated price conditions and short-term pullbacks.

In previous instances, similar moves into the upper Bollinger Band were followed by temporary corrections as momentum cooled.

Source: TradingView

Despite this, buying activity remains elevated. The Bull Bear Power (BBP) indicator continued to favor bullish momentum, showing that buyers still dominate broader market activity.

The indicator, which tracks the balance between bullish and bearish pressure, recently formed its strongest green histogram bar since the 9th of January. The move highlights aggressive buyer participation and suggests traders still expect further upside in the near term.

Perpetual traders begin positioning defensively

While spot market sentiment remains largely bullish, activity in the perpetual futures market points to growing caution among derivatives traders.

At the time of writing, Open Interest climbed 32% to nearly $33 million, indicating a significant rise in leveraged positioning around the asset.

Source: CoinGlass

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 typically reflects growing bearish sentiment among leveraged traders, as short sellers increasingly pay premiums to maintain downside positions. If selling pressure accelerates alongside rising leverage, JASMY could face heightened volatility in the sessions ahead.

Final Summary

• JASMY prices rebounded, yet growing resistance at a key supply zone and rising short activity in the perpetual market could threaten the rally.
• Indicators suggest the asset is trading at overextended levels, but bullish momentum remains firm.