Jupiter (JUP) has recently entered a bearish phase, with a 34.29% price decrease over the past month. This downward momentum has carried over into the past 24 hours, with a notable 11.38% drop. The ongoing market activity and technical indicators suggest that further declines are imminent for JUP, and analysts are forecasting a potential 39% dip in the near future. With current on-chain data signaling weak sentiment, JUP’s price could plummet to as low as $0.40 if key support levels fail to hold.

Declining Market Activity Raises Concerns

One of the primary factors contributing to the current downtrend in JUP’s price is the significant decline in market activity. Over the past few weeks, both daily active addresses and transaction volumes have sharply decreased. According to data from Artemis, the number of active addresses on the Jupiter network dropped dramatically from 724,400 on February 10 to just 433,800 recently. This represents a clear reduction in user engagement and trading interest.

Similarly, the number of daily transactions has also dwindled, dropping to a yearly low of 1.1 million after peaking in mid-January. This decline in transactions is directly tied to the drop in active addresses, signaling a weakening demand for JUP. When fewer transactions are taking place, the overall market sentiment weakens, contributing to the asset’s falling price.

Increased Trading Volume Amidst Falling Prices

In contrast to the declining activity, JUP has seen a surge in trading volume, with $531.9 million in trades recorded recently. This surge in trading volume, paired with a drop in price, typically signals that the market is in a distribution phase. A distribution phase occurs when more sellers than buyers dominate, further driving prices down.

Additionally, JUP’s revenue has dropped significantly, further confirming the negative sentiment surrounding the token. Jupiter’s revenue, which had previously reached $27,670 in one month, plummeted to just $7,870. This sharp decline reflects a significant decrease in liquidity on the platform, a critical factor for any cryptocurrency’s price stability. A lack of liquidity makes it harder for JUP to find support, especially in a bearish market environment.

Support Levels and Bearish Outlook

JUP’s price is currently trading near a crucial support level, which has previously been a key zone for price rallies. If the asset is able to hold this level, there’s a possibility of a reversal and a price rally toward higher levels. However, if this support zone fails to hold, JUP could experience a sharp decline.

The support level in question is at $0.718, and analysts suggest that a breach of this level could trigger a further drop in price. In the worst-case scenario, Jupiter’s price could fall by as much as 39%, potentially reaching as low as $0.43. Given the current bearish market sentiment and declining activity, many traders are worried that JUP will fail to hold these key support levels.

Bearish Sentiment Likely to Persist

With the current market conditions, it seems that Jupiter is more likely to continue its downward trajectory. The combination of reduced market activity, rising selling pressure, and declining revenue suggests that the price of JUP may continue to fall further. Until there is a significant shift in market sentiment, traders should remain cautious, as the risk of further losses appears high.

In conclusion, while Jupiter has the potential for a rebound if it holds key support levels, the current market environment is overwhelmingly bearish. A further decline in price to $0.43 could be on the horizon if the negative trends continue. Traders and investors should closely monitor the support levels and market indicators to assess whether Jupiter can recover or if the bearish phase will persist.