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.

Source: Santiment

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