Solana-Based Jupiter (JUP) Defies Market Slump, Here’s Why
Today, January 25, 2024, the entire cryptocurrency market seems to be in trouble. Against this backdrop, JUP, the native token of Solana-based decentralized exchange Jupiter, is bucking the trend with impressive price gains. The sharp rise in price over the past 24 hours has attracted considerable attention from traders and investors.
Reasons for Jupiter’s price surge
The underlying reason for this surge is Jupiter’s acquisition of a majority stake in Moonshot for an undisclosed amount. In a post on X (formerly Twitter), Jupiter’s The pseudonymous founder “Meow” revealed the acquisition. Moonshot is a cryptocurrency-based company that enables users to buy and sell meme coins on iOS and Android.
The acquisition creates additional growth opportunities for the decentralized exchange.
JUP inflow reaches $6.5 million
However, long-term holders and investors were spotted selling off their holdings during this upward rally, on-chain analytics firm Coinglass reported. Spot inflow/outflow data shows that the exchange witnessed $6.5 million worth of JUP inflows in the past 24 hours.
Heavy inflows into exchanges suggest investors may be selling. Additionally, this could increase selling pressure, potentially leading to a short-term price correction and further declines.
Current Price Momentum
JUP is currently trading at around $1.01, with the price surging more than 17% in the past 24 hours. During the same period, its trading volume increased by 95%, indicating increased participation from traders and investors compared to the previous day.
Jupiter (JUP) Technical Analysis and Upcoming Levels
According to expert technical analysis, the recent price surge has brought JUP to strong resistance at $1. Historically, this level has been a selling pressure point. JUP has reached this level twice since December 2024 and has experienced price declines each time.
This time around, however, market sentiment has shifted, and with the recent acquisitions, the odds are high that JUP will break above this resistance level.
Based on recent price action, if JUP breaks resistance and closes above the $1.05 mark, it is likely to surge 37% to $1.40 levels.
On the positive side, with a relative strength index (RSI) of 55, JUP still has plenty of room to continue rising and reach forecast targets.
