- The main challenge for JUP is a descending trendline that has caused three consecutive pullbacks.
- However, after an expected short dip, JUP could see a 100% increase targeting the $2 level.
The past month, Jupiter [JUP] is up 31.72%, and the daily chart shows continued strength with an additional 11.30% increase, setting the stage for a potential breakout.
AMBCrypto’s analysis suggests that JUP’s momentum could extend further provided it holds key support levels and market metrics continue to align favorably with the bullish trend.
JUP market dynamics: leg down then up
According to JUP’s daily chart, the asset is well positioned for a potential rally, despite recently encountering resistance on its third failed breakout attempt, which resulted in only a small decline.
However, this downturn is expected to continue for a while as increased selling pressure could push the JUP further down towards the support level at 0.9158, where large buy orders are likely.
If JUP reaches this support level, it could trigger a recovery, allowing the asset to overcome the downtrend line resistance first.
This could be followed by new resistance at 1,847 before a potential move towards the $2 target.
Source: TradingView
AMBCrypto analyzed technical indicators to determine the likelihood of this predicted scenario occurring.
Market greed signals a possible decline for JUP
According to the Money Flow Index (MFI), which measures the flow of liquidity into and out of assets to assess the behavior of market participants, JUP is likely to experience a decline in the near term.
The MFI has entered the overbought zone and crossed the 80 mark, indicating extreme greed in the market. This means that a corrective decline is needed to balance the price action.
This decline is expected to fade at the aforementioned support level or lead to some price revaluation before the next upward move.
While this downturn may cause some panic, the Parabolic SAR (Stop and Reverse) indicator shows that market sentiment remains bullish, with a range of points below the price of the JUP.
In summary, the expected decline is likely to be short-lived before an upward move resumes.
Source: trading view
Open interest in JUP continues to rise
Data from Mint glass shows that Open Interest in Jupiter (JUP) increased by 13.89%, bringing its total value to $126.25 million.
Realistic or not, here is JUP’s market cap in SOL terms
Open Interest reflects the actions of market participants, and in this case it indicates an increase in the number of long contracts and the maintenance of existing long positions.
This indicates that the market is maintaining its overall bullish sentiment.