Jupiter (JUP) has captured attention within the crypto market, particularly after its recent surge. The token recorded a breakout, rising from around $1.01 to $1.16, indicating strong bullish momentum.
While the upward trend signals positive market sentiment, the following question concerns whether this momentum can carry JUP to its projected target price range of $1.85 and beyond, potentially even reaching a $5-$10 valuation in the long run.
The recent price movement suggests that JUP is respecting an established upward trend, forming a bullish flag pattern following the breakout. A resistance zone between $1.20 and $1.40 lies ahead, and its breach could be key to sustaining the bullish momentum.
JUP’s journey towards this resistance zone, currently priced at $1.09 at the time of writing, will be influential. If it successfully breaks past these levels, further price appreciation could follow. However, traders should remain cautious and closely monitor price action near $1.20 for signs of reversal or continuation.
Derivatives market data: Decreased activity and market sentiment
Market activity surrounding Jupiter has changed. Trading volume has dropped by 29.54%, currently standing at $2.84 billion, while open interest has decreased by 17%, now at $266.26 million. This drop indicates reduced short-term market activity, which might affect investor confidence.
A balanced long/short ratio of 0.99 also suggests a neutral market sentiment overall. However, it’s noteworthy that short positions currently outweigh long positions on major platforms such as Binance and OKX, signaling a slightly bearish sentiment in the derivatives market.
With JUP’s market cap at $1.95 billion, its trading volume has dropped by 23.65%, reflecting decreased liquidity in the market.
Traders should be aware that this reduced liquidity, combined with the volatility observed in the derivatives market (with liquidations in the past 24 hours), could lead to price swings. The volume-to-market cap ratio of 60.52% points to moderate liquidity levels, which should be factored into any trading decisions.
Technical indicators: RSI and MACD signals for future price action
The JUP Relative Strength Index (RSI) has reached 64.12, demonstrating strong bullish tendencies yet showing warning signs of overheating. The data shows a reading above 70, which indicates a possible asset correction, so traders need to stay alert about this trend soon.
The Moving Average Convergence Divergence (MACD) indicator demonstrates positive performance since its MACD line sits above the signal line, indicating rising upward momentum.
