RaydiumProtocol

Two leading Solana ecosystem tokens, Jupiter ($JUP ) and Raydium ($RAY ), have experienced significant declines earlier this week, bringing them to critical support levels. However, both tokens have since rebounded, indicating a potential recovery from their recent market corrections.

Jupiter (JUP) Technical Analysis

A review of Jupiter's weekly chart highlights a prolonged descending triangle pattern that has shaped its price action over the past year. Following a rejection from the upper trendline in early December, JUP extended its correction phase, pushing deeper into support levels.

Key Technical Levels:

The recent decline led JUP to test a crucial support zone at $0.67.

Buyers defended this level, prompting a rebound to approximately $0.78 at the time of writing.

The first resistance level to monitor is the 25-week Simple Moving Average (SMA).

A successful breakout above this resistance could confirm a bullish shift, potentially driving JUP toward the upper trendline of the descending triangle, between $1.10 and $1.20.

Raydium (RAY) Technical Analysis

Raydium (RAY) is currently consolidating within an ascending broadening wedge pattern, which is traditionally a bearish technical structure. The token faced a sharp correction starting January 23, following a rejection at $8.67, which drove prices lower.

Key Technical Levels:

RAY tested its lower trendline support at $4.31 before finding strong buying interest.

This level held firm, leading to a price rebound to around $4.66.

The next major resistance to watch is the 100-day SMA.

A decisive breakout above this level could signal an uptrend continuation, potentially pushing RAY toward the upper resistance trendline of the wedge, indicating a possible rally of over 100%.

Market Outlook and Considerations

Both Jupiter (JUP) and Raydium (RAY) have successfully defended key support zones, displaying early signs of recovery. While JUP remains confined within a descending triangle, a breakout above its resistance levels could mark the beginning of a strong bullish phase. Similarly, RAY’s price action within its broadening wedge pattern suggests cautious optimism, with a confirmed breakout potentially leading to a substantial rally.

Despite these positive signals, traders should exercise caution and look for further confirmation before entering positions. Monitoring key resistance levels and market momentum will be essential in determining the next directional move for both assets.