Jupiter (JUP) Tests Support Amid Proposal to Burn 30% of Token Supply
The cryptocurrency market is in constant flux, and the recent proposal by Jupiter Exchange to burn 30% of the total JUP tokens (equivalent to 3 billion tokens valued at $2.3 billion) could signal a bullish trend for the cryptocurrency's price.
Jupiter Exchange's Proposal
The proposal aims to reduce the total supply of JUP by concentrating this reduction in the team's allocations, without impacting the annual JUP airdrops for the community. According to Shrivastava, “this is a smart move that can increase the token's scarcity and consequently raise its market value.”
In a detailed technical analysis, Shrivastava, a famous analyst, noted that the JUP price recently showed a bullish divergence. On Tuesday, the Jupiter price tested a crucial support area ranging from $0.637 to $0.708 and jumped 5%, reaching its current price of $0.778.
Technical Analysis of Jupiter (JUP)
Additionally, the analyst observed that “the lower low formed on June 18 does not reflect the higher highs of the Relative Strength Index (RSI) during the same period,” a phenomenon known as bullish divergence, which often leads to trend reversal or a short-term rally.
Shrivastava believes that if the support level between $0.637 and $0.708 holds, JUP could rise 21% from its current price of $0.778, reaching the 50% price retracement level at $0.945.
He adds that if Jupiter's price closes above $0.945, an additional rally of 25% can be expected, testing the high of $1.018 from June 5.
Increased Total Value Locked (TVL) in DeFi Platforms
Another positive indicator for Jupiter is the increase in Total Value Locked (TVL) in its DeFi platforms. Data from the crypto intelligence tracker Defi Llama shows that JUP's TVL rose from $383.14 million on June 14 to $401.3 million on June 20, a 4.7% increase.
“This growth in TVL indicates increasing activity and interest within the JUP ecosystem, adding credibility to the optimistic outlook,” explains Shrivastava.
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