The market performance of Jupiter [JUP] has been notably strong, placing it ahead of several other tokens. In the past month alone, Jupiter has seen an impressive surge of 45.85%, with an additional 5.89% uptick in the last 24 hours.
Nevertheless, the market sentiment remains divided, with some participants opting to buy while others choose to sell, leading to uncertainties about the sustainability of this recent rally.
Anticipating a Potential Bullish Run to Reach $1.8
A closer look at the chart displays encouraging signs for JUP as it forms a distinctive “cup and handle” pattern (highlighted in blue on the image below) — a formation typically signaling an impending upward price movement.
For this optimistic trend to materialize, JUP must successfully break through the critical resistance level situated at $1.0914, a level likely to harbor substantial selling pressure. If this resistance is breached, three potential target levels are worth considering: $1.22, $1.32, and the ultimate long-term target of $1.8.
Further analysis strongly indicates the likelihood of this rally unfolding as projected.
Continued Accumulation Supports Bullish Momentum
Accumulation trends persist upward, suggesting further potential growth. Presently, the trading volume stands at 367.829 million, indicating robust buying activities.
The A/D (Accumulation/Distribution) indicator, which evaluates volume movements into and out of an asset, aids traders in assessing market sentiment by amalgamating price and volume data.
Additionally, the Moving Average Convergence Divergence (MACD) indicator exhibits an upward trajectory, entering positive territory, reinforcing a bullish stance.
A notable occurrence is the formation of a “Golden Cross” pattern on the MACD, where the blue line surpasses the orange Signal line, often signaling an impending significant surge that could potentially drive JUP closer to the envisaged target of $1.8.
Furthermore, the Open Interest metric, reflecting unsettled contracts in the market, indicates a prevalence of long contracts, with a marked increase of 17.17% totaling $139.51 million according to Coinglass.
Potential Selling Pressure Threatens JUP’s Rally
Observers have noted considerable selling activities surrounding JUP that might impede its current rally. Noteworthy indicators of this selling pressure encompass the negative Funding Rate and positive Exchange Netflow.
At the present moment, the Funding Rate has dipped to -0.0007, indicating that short positions are compensating long positions to maintain their trades open. In a similar vein, the Exchange Netflow depicts predominantly positive readings across various timeframes, from hourly to weekly.
These factors suggest a scenario where spot traders are transferring Jupiter to exchanges for selling purposes, exerting downward pressure on the asset. Over the last seven days, approximately $11.05 million worth of JUP has been deposited into exchanges.
If these metrics persist in exerting downward pressure and selling momentum continues, the price of JUP is anticipated to trend lower in the near term.