JST retraces 20% after $0.1 rejection – Is JUST's 3-month uptrend over?

JUST [JST] has rallied strongly since February. After flipping the $0.046 level to support, at a time when widespread panic ruled the crypto market, JST began to trend higher. It rallied from $0.046 to $0.097, a 112% move in three months. In the past 24 hours, it saw a sizeable retracement in its uptrend. The token's price was down 10.7% in 24 hours, while the daily trading volume surged by 150%. These price and volume trends suggested distribution rather than a mere retracement. Is it too early to conclude that the uptrend is ending?

Over the past two weeks, Bitcoin [BTC] has been falling from the $82k resistance zone. The leading crypto is operating within a longer-term bearish trend. Its quick losses have turned the altcoin market's sentiment firmly bearish. However, that had not been enough to halt JUST token's uptrend, which lasted till the end of May. It should be noted that a similar JST rejection from the $0.091-$0.10 area also happened in September 2021 and April 2022. In April, the DeFi ecosystem on the TRON [TRX] blockchain announced the completion of the third JST buyback and burn of 271.3 million JST tokens. The burn events had helped sentiment and kept the uptrend going — a reminder that burning tokens is, as always, a crypto crowd favorite.

The 1-day timeframe showed the higher low at $0.0769 (orange) breached on the 3rd of June. The high-volume wipeout appeared to end the uptrend, since the formerly bullish structure has been cleanly breached. For context, despite the daily timeframe's structure break, the higher timeframe trend remained bullish. As things stand, a retracement to the $0.044-$0.055 area appeared likely.

JST could bounce to the $0.087-$0.091 golden pocket before continuing its higher timeframe retracement toward $0.044-$0.055. Therefore, traders can wait for such a bounce before selling. It is possible that the bounce might struggle to clear even the $0.084 level. It depends on bearish conviction and when the next wave of selling commences. Traders need to be nimble, but can maintain a "sell the bounce" stance — because in this market, optimism is best kept in short, controlled doses.