Jupiter [JUP] surges amid 62% daily volume spike – Can bulls hold?

Key Takeaways

The Jupiter price action and indicators showed volatility ahead for the DEX token. The liquidity at the $0.55 local resistance could give rise to a minor price bounce, but might not establish an uptrend.

The decentralized exchange (DEX) platform’s native token Jupiter [JUP] saw sizable gains recently.

At the time of writing, its daily trading volume shot higher by 62.5% as the token gained 6.5% within the past 24 hours. However, the price charts showed that an uptrend was not in full swing yet.

Data from Santiment showed that the Daily Active Addresses have picked up slightly since mid-June.

Similarly, network growth, which refers to the number of new addresses being created each day, was also up from mid-June.

The 7-day Weighted Sentiment has oscillated between bullish and bearish over the past two months. At the time of writing, it remained steadily positive.

Can this translate into a sustainable uptrend for JUP?

Source: JUP/USDT on TradingView

On the 1-day chart, AMBCrypto found that Jupiter was trading within a long term range. Outlined in purple, this range extended from $0.33 to $0.63. The mid-point at $$0.48 was being contested by the bears and bulls at press time.

The evidence at hand showed that the bears have the upper hand. The price had sunk below the mid-range level with a daily session close at $0.454 on the 25th of August.

At press time, the MACD hovered around the zero line, showing no decisive momentum. The CMF was at -0.07, showing sizable capital outflows.

Together, they hinted at further losses for Jupiter bulls.

Source: CoinGlass

The liquidation map highlighted the $0.542-$0.548 area as a zone of interest. The concentration of short liquidations could see a price bounce toward $0.55, which has been a local resistance level over the past two weeks.

To the south, the long liquidations were lower, but clustered around the $0.48 mark. Hence, a dip to $0.48 followed by a bounce to $0.548 was a possibility traders should beware of.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion