- At the time of writing, Jupiter was trading in the demand zone, but buying pressure was sluggish.
- Further losses can be expected as price moves to the next major liquidity zone.
Jupiter (JUP) cryptocurrency seems to be having a tough time in the market. The token price has dropped 26% in two weeks, and the trading volume has dropped 18% in the last 24 hours alone. This is a sign of bearish market sentiment.
Solana (SOL) liquidity aggregator has not attracted many buyers recently, despite the token trading in an attractive demand zone. Will the bulls stop sellers, or should we expect a bigger drop?
The 78.6% correction level may not hold.
Source: JUP/USDT on TradingView
The market structure on the daily chart was once again bearish. Jupiter appeared to be forming an extended range between $0.736 and $0.913, but it fell below the lows of the last few days of trading.
The $0.69-$0.78 zone has been a demand zone since April and has been tested multiple times. There have also been multiple daily sessions that closed below the 78.6% Fibonacci correction level of $0.76.
A break below the low of $0.658 on August 5th would signal the next price target of $0.47. OBV has also been declining slowly over the past 6 weeks, showing no buying pressure. Finally, the daily RSI is reflecting bearish momentum at a reading of 40.
Jupiter has a bullish reversal potential below the retracement levels.
Source: Highblock
Once the 78.6% level is broken, the 100% retracement level is usually the next target. AMBCrypto has noticed that for Jupiter, this may not be the case.
Realistic or not, JUP’s market cap in BTC terms is as follows:
This is because a large liquidity pool has been formed at $0.6 over the past 3 months. If it falls to this area to gather liquidity, there is a high possibility that the price of JUP will rebound quickly.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.