Jupiter (JUP), the native token of the decentralized exchange (DEX) platform, has recently seen a surge in trading activity and price, sparking interest in its potential for a sustained uptrend. Despite notable daily gains and an increase in network engagement, a deeper dive into technical indicators suggests a more complex and volatile path ahead for the asset.
JUP's Recent Momentum and User Engagement
In recent days, Jupiter (JUP) has captured market attention with a significant 62.5% increase in daily trading volume and a 6.5% price gain within 24 hours. This positive movement is supported by growing on-chain activity, as Daily Active Addresses and network growth have seen an uptick since mid-June. Investor sentiment, though oscillating, currently leans positive, fueling speculation about a potential rally.
Technical Outlook Signals Caution
Despite the recent enthusiasm, a closer look at JUP’s price charts reveals it's currently trading within a long-term range of $0.33 to $0.63. The critical mid-point at $0.48 is fiercely contested, with recent price action indicating bears currently have the upper hand, as the token closed below this level. Technical indicators like the MACD hover indecisively around the zero line, while the Chaikin Money Flow (CMF) at -0.07 points to significant capital outflows, collectively hinting at potential further losses for JUP bulls.
Liquidation Zones and Potential Price Swings
Analysis of liquidation maps suggests immediate volatility. A concentration of short liquidations around the $0.542-$0.548 area could trigger a minor price bounce towards the $0.55 local resistance. However, this potential rebound is unlikely to establish a new uptrend. Traders should also be mindful of long liquidations clustered near the $0.48 mark, indicating a possible scenario where JUP could dip to $0.48 before attempting a bounce towards $0.548. This suggests a period of two-sided price action rather than a clear directional move.
