Despite a robust 15.65% surge in the past week, trading activity for Jupiter [JUP] has decelerated. The asset experienced a marginal 0.24% decline on the daily chart, highlighting mild bearish pressure and raising concerns regarding diminishing momentum.
Currently, a cloud of uncertainty lingers, casting doubt on the future direction of the asset.
Optimism Grows for JUP
Positive sentiment is gaining momentum around JUP, supported by a decrease in Exchange Netflow and a gradual uptick in Open Interest in recent days.
Exchange Netflow, a metric tracking asset movement to and from exchanges, offers insights into market sentiment.
Current data indicates a drop in JUP deposits on exchanges, suggesting a shift towards holding rather than selling, strengthening JUP’s position by limiting its supply on exchanges.
Simultaneously, Open Interest has risen by 2.62% in the last 24 hours, reaching $169.02 million. This upswing further bolsters positive sentiment, reflecting an increase in outstanding contracts, especially among long traders.
These factors collectively point towards market optimism, although broader trends could influence JUP’s trajectory.
Anticipated Market High for JUP
JUP has breached the neckline of a traditional cup-and-shoulder pattern at $1.2663, marking a significant hurdle that could signify the beginning of a substantial rally.
In the event of this pattern playing out, JUP may climb by an additional 49.96%, hitting $1.90—exceeding its previous peak of $1.85. This projected movement aligns with the pattern’s strength observed on the chart.
Nevertheless, bearish sentiment persists in the market and might impede JUP’s upward momentum.
Market Liquidation Imbalance
In the last 24 hours, a noticeable discrepancy in market liquidations has emerged. Long liquidations stood at $226,090, whereas short liquidations were much lower at $1,470.
This significant difference, with a wide gap between long and short liquidations, indicates a one-sided market sentiment, favoring the bears in this scenario.
Should this trend persist, the market is likely to continue on a downward trajectory unless stronger bullish forces intervene to counterbalance it.