Jupiter’s recent performance in the market has been quite impressive, positioning it favorably compared to other tokens. In the last month alone, it has seen a remarkable 45.85% increase, with a further 5.89% rise in the last 24 hours.
Despite this upward trend, there remains uncertainty surrounding the sustainability of this rally, with some traders buying while others are selling.
Potential for Jupiter to Reach $1.8 in Price
Analyzing the chart, it is evident that JUP is displaying bullish indicators, forming what is known as a “cup and handle” pattern (highlighted in blue in the image below) — a formation that typically signals an upcoming upward movement.
For Jupiter to realize this bullish potential, it must first surpass the crucial resistance level at $1.0914, where significant selling pressure might be present. Upon breaching this level, potential price targets to consider include $1.22, $1.32, and the long-term target of $1.8.
Further analysis suggests a high probability of this rally playing out as anticipated.
Ongoing Accumulation Supports Bullish Momentum
Accumulation is persisting, trending upwards with the potential for further increases. Currently, trading volume stands at 367.829 million, indicating robust buying activity.
The A/D (Accumulation/Distribution) indicator, which assesses volume flow in and out of an asset, is showing positive signs, aiding traders in gauging market sentiment through a combination of price and volume data.
Moreover, the Moving Average Convergence Divergence (MACD) indicator continues its upward trend, entering positive territory, thus reinforcing the bullish outlook.
The MACD has formed a “Golden Cross” pattern, where the blue MACD line crosses above the orange Signal line, often heralding a substantial rally that could propel JUP towards the projected target of $1.8.
Adding to the positive sentiment is the Open Interest metric, reflecting the number of outstanding contracts in the market. Currently, long contracts dominate with a 17.17% increase, totaling $139.51 million according to Coinglass.
Risks of Selling Pressure Potentially Impacting Jupiter’s Rally
Notably, there has been significant selling pressure observed on JUP, which could impede its upward trajectory. Key indicators of this selling activity include the negative Funding Rate and positive Exchange Netflow.
As of the latest data, the Funding Rate has declined to -0.0007, signaling that short positions are compensating long positions to maintain their trades open. Additionally, the Exchange Netflow has consistently shown positive values across various time frames, from hourly to weekly.
These metrics suggest that traders are transferring Jupiter to exchanges for selling purposes, exerting downward pressure on the asset. Over the past seven days, approximately $11.05 million worth of JUP has been deposited into exchanges.
If this selling pressure persists and these metrics continue to weigh on JUP, it is probable that the price will trend downwards in the near term.