- Jupiter was trading in a demand zone at the time of writing, but buying pressure was lethargic
- Further losses can be expected as the price moves towards the next major liquidity zone
Jupiter [JUP] crypto seems to be in a tough spot in the market. The price of the token has fallen by 26% in two weeks trading volume down 18% in the last 24 hours alone – A sign of bearish market sentiment.
The Solana [SOL] liquidity aggregator has not attracted many buyers lately even though the token was trading in an attractive demand zone. Will the bulls hold off the sellers, or should we expect a deeper decline?
The 78.6% retracement level may not hold
Source: JUP/USDT on TradingView
The market structure on the daily chart was again bearish. Jupiter seemed to form a range stretching between $0.736 and $0.913, but the last few trading days have taken it below the low.
The $0.69-$0.78 zone has been a demand zone since April and has been tested several times. A daily session ending below the 78.6% Fibonacci retracement level at $0.76 has also occurred frequently.
A drop below the August 5 low of $0.658 would be a sign that $0.47 is the next price target. The OBV has also fallen slowly over the past six weeks, indicating a lack of buying pressure. Finally, the daily RSI reflected bearish momentum with a value of 40.
Bullish reversal potential for Jupiter below the retracement level
Once the 78.6% level is defeated, the 100% retracement level is usually the next target. AMBCrypto noted that in the case of Jupiter it might not work.
Realistic or not, here is JUP’s market cap in BTC terms
This is because a large amount of liquidity of $0.6 has been built up over the past three months. A drop to this zone to gather liquidity would likely be followed by a quick price rebound for JUP.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
