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Jupiter [JUP] Fell by 10% as the stain outflow rose, but positive financing percentages and MFI suggest that bulls may not have been done yet.
Jupiter [JUP] Saw a sharp decrease and only dragged the price in the past day with 10%.
Analysis indicates that the decline is driven by a wave of liquidity outflow of both spot and derivative market investors.
Nevertheless, market indicators paint a different image, one that suggests that Jup could make an extensive run and recover recent losses.
Jup can make a quick rebound
Jup’s sharp drop can be short -lived because different indicators indicate a possible rebound. Price promotion shows Jup that his 20-day advancing average test, often a pivot point zone between support and resistance.
At the time of the press, the token traded at $ 0.5675, just above the 20-day MA at $ 0.5431, with a green candle formation.
Source: TradingView
Moreover, the Money Flow Index (MFI) remains in Bullish Territory with a lecture of 62.70.
Usually, when the MFI is higher than 50 and trending to 80, this strong liquidity inflow suggests, which increases the chances of a rally in the short term.
However, the chance of sustainable Bullish Momentum depends on activity in both the derivative and the spot markets.
Derived market shows mixed signals
The derivative market reveals two contrasting trends that can form the next movement of Jup.
Open interest – which measures the total value of active contracts – calls sharply. More than $ 25.4 million in Jup contracts had been concluded, which means that open interest fell by 14.84% to $ 171.52 million per Coinglass.
This decrease, which coincided with a decrease in the price, suggests that most of buyers came, possibly a strategic output.
Source: Coinglass
Interesting is that the open interest -weighted financing rate tells a different story, which indicates that the general sentiment of Jup Bullish remains.
However, the financing percentages remain in a positive area with 0.0027%, which indicates the dominance of a long position, although the speed is in the barrel.
If the financing speed in a negative area falls, this can turn around and lead to more liquidations.
Spotmarkt contributes to the narrow pressure
In the meantime, Spot Market Investors are strengthening the downward pressure on Jup.
In the last 48 hours they have sold Jup for $ 1.18 million, which leads to a considerable net outflow.
This behavior indicates a shift in sentiment-van a long-term vision for a short-term prospect of traders anticipating further price decreases.
Source: Coinglass
If spot outings persist and continue to lose long positions, Jup could get more later pressure in the coming days.