Analyzing Jito’s [JTO] ‘death cross’ – Is a bigger dip ahead?

• Jito depicted a strong bearish edge as its price struggled to jump above key resistance levels.
• The 50 EMA fell below the 200 EMA to confirm a death cross on the daily chart. But the RSI’s higher lows bullishly diverged with the price.

Jito [JTO] continued its downtrend below its 20, 50, and 200 EMAs after reaching its seven-month high in December 2024.

The altcoin found a high liquidity region between the $2.3-$3.2 range, yet recent market uncertainties caused further sell pressure.

The altcoin was hovering NEAR the $2.0-$2.1 mark at the time of writing.

Will the recent bullish divergence propel a near-term bounce?

Source: TradingView, JITO/USDT

JTO’s price has consistently formed lower highs since December, indicating a sustained downtrend in its price action.

The nearest dynamic resistance is the 20 EMA at $2.21, where a daily close above could signal momentum shifting.

A “death cross” occurred as the 50 EMA ($2.63) dropped below the 200 EMA ($2.53), confirming a bearish bias.

If bears breach the $2.1–$2.4 range, the next significant support level lies between $1.86 and $1.88. At press time, the RSI was around 47, below the neutral 50 mark, although registering higher lows despite price forming lower lows.

This bullish RSI divergence suggests a potential recovery or relief bounce from the current support level. If bulls hold the $2.3 support, it may validate the RSI divergence. Failure could drag JTO toward the $1.86 range.

Derivatives data revealed this

Per Coinglass data, JTO’s Open Interest (OI) surged nearly 89% to $51.21M over the past day. On the other hand, volume climbed by 92% during this period, suggesting traders were positioning for volatility.

The overall Long/Short Ratio hovered around 0.98–1.10 across various exchanges, indicating a near-even split of bullish vs. bearish bets. However, top traders on Binance showed a slight tilt toward long positions.

Source: Coinglass

The Funding Rates hovered near neutral to slightly negative, indicating shorts are paying longs and suggesting mild bearish market sentiment.

If long positions increase with neutral/negative funding, a short squeeze could occur if prices begin to rise. 

However, persistent negative funding and failure to reclaim key EMAs may lead to the continuation of JTO’s downtrend.