Jupiter [JUP] Crypto Price Prediction – Analyzing the Likelihood of a Drop to $0.7

Following a recent surge that briefly pushed JUP above $1, the digital asset has begun to retrace, reducing its monthly gains to a mere 14.69%. Notably, within the last 24 hours, JUP saw a decline of 2.33% on the price charts.

An analysis by CryptoCrypto suggests that JUP might experience further devaluation in the upcoming period, particularly given indications of a sustained downward trend for the asset.

Potential Decline Triggered by Bearish Patterns

As of the current assessment, JUP appears to be trading in an ascending channel – a pattern characterized by price fluctuation within a defined range, trending upwards, often followed by a sharp decline.

In the event of breaching the support floor within this channel, JUP could test stability at a nearby support level close to $0.9438, leading to a potential short-lived recovery.

Nonetheless, a breach below this level may drive JUP towards lower targets, with $0.8396 representing a probable minor bounce before ultimately descending to $0.7051, which marks the bottom of the ascending channel.

Further scrutiny by CryptoCrypto unveiled an increase in on-chain selling activities, strengthening the bearish sentiment prevailing in the market.

Selling Pressure Due to Waning Confidence in JUP

There seems to be a diminishing confidence among investors regarding JUP, as evidenced by recent spikes in both daily and weekly Exchange Netflows.

At the time of the analysis, Exchange Netflows displayed positive figures of $565,590 daily and $7.01 million weekly, indicating a shift of assets from private wallets to exchanges. This movement typically signals selling pressure in anticipation of further price declines.

Additionally, Coinglass reported a 4.13% decrease in JUP’s Open Interest (OI), amounting to $135.18 million. This suggests an increase in short positions being opened and maintained.

With both metrics aligning towards a downward trajectory, the Accumulation/Distribution (A/D) indicator corroborates the prevalence of selling activities in the market.

Heightened Selling Signals Detected

Furthermore, it is crucial to consider the Accumulation/Distribution (A/D) indicator, which gauges supply and demand by analyzing price movements and trading volume. It ascends with strong buying activity and descends with pronounced selling activity, indicating potential shifts in market trends.

In the case of JUP, the A/D indicator has been on a sharp decline since October 24, registering a value of 485.311 at the time of evaluation, a clear indication of substantial selling pressure.

If this downward momentum persists, JUP is likely to breach its ascending channel, potentially driving the asset towards the targeted level of $0.7051.