Over the past 24 hours, Jupiter’s (JUP) value has experienced a significant decline, impacting its monthly gains which now stand at just 13.24%. Traders who entered the market during this period faced losses of 12.08%, reflecting the market’s current downturn.
However, there is growing accumulation among market participants and an overall improvement in sentiment towards JUP, which could potentially drive its recovery. These factors may pave the way for reversing the recent losses observed.
Key Support Levels for a Potential JUP Rally
JUP has been trading within an ascending channel, with its recent decline following a test of the channel’s resistance zone.
An ascending channel, as depicted below, is characterized by upward price movement confined between an upper resistance boundary and a lower support boundary.
The recent drop in JUP’s price brought it down to the lower support boundary of the channel, coinciding with a significant support level at $1.0118. The token has already shown a positive response at this level, indicating the potential for a rise to $1.46, representing a possible gain of 44.75%.
CryptoCrypto’s examination identified confluence that supports this perspective, including indications of accumulation by market participants that could further propel the rally.
Is a Potential Reversal in Sight for JUP?
JUP’s recent downturn has brought it to the lower limit of the Bollinger Bands, suggesting a potential turning point for the asset.
Bollinger Bands are a commonly used volatility indicator that feature upper and lower zones surrounding a moving average. The upper zone signifies overbought conditions, while the lower zone indicates oversold conditions.
With JUP trading near its lower boundary currently, it hints that the asset may be oversold, potentially alleviating selling pressure and opening the door for a potential recovery.
The Accumulation/Distribution indicator provides additional support for this view, confirming an upward accumulation trend that indicates the market is moving into a buying phase.
This increasing trend in accumulation also implies a strengthening market sentiment, positioning JUP for a possible recovery from its recent losses.
Reduced JUP Sell-Off Risk Indicates Growing Confidence
An examination of Coinglass’ data suggests a diminished risk of market participants selling off their JUP holdings, as indicated by the negative four-hour Exchange Netflows.
Negative Exchange Netflows signal that more JUP is being withdrawn from exchanges than deposited, reflecting renewed market confidence following the recent drop in the last 24 hours. Such a trend typically reduces the availability of JUP on exchanges, indicating a decrease in selling pressure.
If this trend persists, JUP could gain strength as the limited supply on exchanges drives up demand. With accumulation on the rise, this scarcity effect might contribute to a potential price increase in the asset.