Dec 11, 2024
6thTrade
Jupiter (JUP) is showing signs of a potential rebound after a sharp decline, raising hopes for a recovery of recent losses.
JUP has seen a significant drop in the past 24 hours, reducing its monthly gains to just 13.24%. Traders who entered the market during this period have faced losses of around 12.08%. Despite this downturn, growing accumulation by market participants and improving sentiment may provide the necessary momentum for JUP to recover and reverse its recent losses.
Key Support Levels Point to a Potential Rally
JUP has been trading within an ascending channel, with the recent decline bringing the token to the lower boundary of the channel. This level coincides with a critical support level at $1.0118. At this point, the price has shown a positive reaction, suggesting a potential rebound. If this support holds, JUP could target $1.46, representing a 44.75% potential gain.
Technical indicators back this optimistic outlook, with signs of increased accumulation indicating that more market participants are buying in, which could fuel further upward movement.
Potential for Reversal at Key Technical Levels
JUP’s recent decline has brought it to the lower bound of the Bollinger Bands, signaling that the altcoin may be oversold. The lower bound of the Bollinger Bands often indicates oversold conditions, suggesting that selling pressure may be weakening and a price recovery could be imminent.
Additionally, the Accumulation/Distribution indicator highlights a rising trend in accumulation, confirming that more investors are entering the market. This further supports the idea that JUP could be poised for a reversal and a potential rally.
Reduced Sell-Off Risk as Confidence Builds
Coinglass data shows that the risk of market participants selling off their JUP holdings is decreasing. Negative four-hour Exchange Netflows indicate that more JUP is being withdrawn from exchanges than deposited, a sign of growing confidence in the asset. As supply on exchanges decreases, the scarcity effect could drive up demand, supporting a potential price increase.
With increasing accumulation and diminished selling pressure, JUP could be well-positioned for a recovery, particularly if the current support levels hold and market sentiment remains bullish.
