JasmyCoin (JASMY) is generating a lot of buzz in the cryptocurrency market after a significant price rally in the past 24 hours. The digital asset surged by 26%, accompanied by a dramatic increase in trading volume, which high by 440% to a total of $525.23 million. This has brought JASMY’s price to $0.034, making investors excited about the coin’s potential.

After experiencing weeks of decline, JasmyCoin is now on the verge of a breakout, which could see the coin rise as much as 84% from its current price, possibly reaching $0.059. However, while the technical indicators suggest significant growth, some challenges may stand in the way of this rally. Key factors like profit-taking and activity from short traders could delay or even reverse the price surge in the short term.

JasmyCoin’s Breakout: Is the Surge Sustainable?

Over the past several weeks, JasmyCoin had been moving in a descending channel, marked by lower highs and lows. This is typically seen as a period of consolidation. Recently, however, JASMY broke out of this channel, suggesting that a strong upward move could be on the horizon. The breakout indicates that the coin could rally sharply, provided it maintains its current momentum.

The next major test for JasmyCoin will come when it retests the resistance level that had previously defined the descending channel. If JASMY manages to flip this resistance into support, the price could surge to around $0.059, a price point last seen in December 2024. This potential 84% rally could mark the beginning of a new phase of growth for JASMY, making it one of the more exciting tokens to watch in the near future.

Profit-Taking Could Slow Down the Rally

Although the technical outlook for JASMY appears bullish, profit-taking activity could pose a temporary setback. This week, data from Coinglass revealed that JASMY recorded its first major profit-taking activity since September 2024, with $1.89 million worth of JASMY being sold. Profit-taking often occurs when traders decide to cash in on recent price increases, and this could slow down the coin’s momentum.

In addition to this, Jasmy’s Exchange Netflow turned positive in the past week, meaning more JASMY coins were sold than purchased. A positive Netflow typically signals that traders are exiting their positions, which may indicate short-term selling pressure. While this doesn’t necessarily mean a full reversal of the rally, it does suggest that the upward movement may not be as smooth as hoped.

Short Traders and Negative Funding Rate May Weigh On JASMY

Another factor that could limit JASMY’s price growth is the ongoing dominance of short traders in the market. The Funding Rate, which reflects the cost of holding long or short positions, currently stands at -0.0110%. This negative funding rate suggests that short traders are confident about JASMY’s price potentially falling, making it harder for the coin to maintain its rally.

When short traders control the market, it can lead to additional downward pressure on the asset’s price, as more people bet on JASMY’s decline rather than its rise. This can cause temporary pullbacks in the price, further delaying the expected rally.

Positive Indicators Could Signal a Strong Comeback

Despite the presence of profit-taking and short trading activity, there are several positive indicators that suggest the rally could continue. One of the strongest indicators of an ongoing upward trend is the Moving Average Convergence Divergence (MACD), which recently formed a golden cross. This pattern occurs when the short-term moving average crosses above the long-term moving average, often indicating a strong upward trend.

Additionally, the Relative Strength Index (RSI), which measures the momentum of price movements, is currently above 50, sitting at a bullish reading of 55.05. This suggests that JASMY still has plenty of room to grow, and that the current pullback may be temporary.

Will JasmyCoin’s Surge Continue?

Overall, JasmyCoin is showing strong growth potential in the coming days, but several obstacles could temporarily delay or limit its rise. Profit-taking and short trading activity may present challenges, but the positive technical indicators suggest that the rally could continue if these factors subside.

JASMY’s ability to break through key resistance levels and flip them into support will be crucial in determining whether the coin can achieve its 84% rally. If it manages to overcome these challenges, JasmyCoin could experience significant price growth, becoming one of the more exciting tokens to watch in the near future.