Jupiter (JUP) has recently been a standout performer in the crypto market, showcasing an impressive gain of 45.85% over the past month. Despite this rally, the token encountered significant selling pressure as it struggled to break above a key resistance level. While bullish momentum remains strong, there is lingering uncertainty about whether the token can sustain its upward trajectory or face a correction.

In this analysis, we delve into Jupiter’s current technical setup, explore the bullish ‘cup and handle’ pattern forming on its chart, and examine key market indicators that could impact its price movement in the near future.

Jupiter Targets $1.8 Amid Bullish Sentiment

Jupiter has been flashing bullish signals lately, much to the delight of traders eyeing further gains. The formation of a ‘cup and handle’ pattern on the chart is a key indicator that many are watching closely. This classic chart pattern is often seen as a precursor to significant price rallies, suggesting that JUP could potentially reach the long-term target of $1.8.

For this bullish trend to solidify, JUP must first break through a crucial resistance level at $1.0914. This zone has proven to be a formidable barrier in recent trading sessions, absorbing much of the buying pressure and preventing a clear breakout. A successful breach of this resistance could pave the way for JUP to hit subsequent targets at $1.22 and $1.32, before potentially surging towards the coveted $1.8 mark.

Technical Indicators Point to Continued Uptrend

Several key technical indicators support the notion of a continued uptrend for JUP. One such metric is the Accumulation/Distribution (A/D) indicator, which reflects strong buying activity. The A/D line, which tracks the flow of volume in and out of the asset, has been trending upward, indicating sustained accumulation. This uptick in buying pressure suggests that investors are building their positions in anticipation of a potential breakout.

Adding to this positive outlook is the Moving Average Convergence Divergence (MACD) indicator. The MACD line recently crossed above the Signal line, forming a bullish ‘Golden Cross’ pattern. Historically, this signal has been associated with upcoming price rallies, as it indicates that momentum is shifting in favor of the bulls. The MACD’s move into positive territory further reinforces this bullish sentiment, signaling that the path of least resistance might indeed be upward.

Open Interest Signals Strong Market Participation

Another encouraging sign for JUP’s bullish case is the rise in Open Interest. Open Interest, which measures the total number of outstanding derivative contracts, has seen a notable increase of 17.17%, reaching $139.51 million according to Coinglass data. This surge in Open Interest is a strong indicator of heightened market participation, particularly from traders expecting upward price movement. The majority of these open contracts are long positions, reflecting a growing confidence among market participants in the potential for further gains.

Potential Downside Risks: Selling Pressure Looms

Despite the optimistic signals from technical indicators, there are notable risks that could hinder Jupiter’s rally. One of the primary concerns is the increasing selling pressure observed in recent trading sessions. Several key metrics suggest that selling activity might intensify, potentially stalling or even reversing the current bullish trend.

For instance, the Funding Rate has turned negative, dropping to -0.0007. This metric indicates that traders holding short positions are paying those with long positions to maintain their trades. A negative Funding Rate is often a sign of bearish sentiment, as it suggests that there is a willingness among short sellers to keep their positions open, betting on a price decline.

Similarly, the Exchange Netflow has been predominantly positive across various time frames, from hourly to weekly. A positive Exchange Netflow means that more JUP tokens are being transferred onto exchanges than being withdrawn. This trend typically indicates that investors are preparing to sell, as they move their holdings from private wallets to exchange accounts, increasing the potential for downward price pressure.

$11 Million Worth of JUP Moved to Exchanges: A Warning Sign?

In the past week, approximately $11.05 million worth of JUP has been deposited onto exchanges, a significant move that may signal looming selling pressure. Large inflows of tokens to exchanges often precede increased selling activity, as traders position themselves to take profits or mitigate losses. This influx could counteract the accumulation observed earlier, potentially tipping the scales towards a bearish reversal.

The conflicting signals from the market have created a situation where bullish momentum is facing strong headwinds. While the ‘cup and handle’ pattern is traditionally a bullish setup, the presence of significant selling pressure and negative market sentiment indicators cannot be ignored. The outcome of this tug-of-war between buyers and sellers at the key resistance level of $1.0914 will likely determine JUP’s next move.

What’s Next for Jupiter’s Price?

For traders and investors watching Jupiter closely, the next steps are crucial. If JUP manages to break through the $1.0914 resistance, it could trigger a wave of buying that propels the price towards the next targets of $1.22 and $1.32. Beyond these levels, the ultimate goal for bulls would be to reach $1.8, representing a significant gain from its current price.

However, if the resistance proves too strong and selling pressure increases, JUP could face a pullback. The accumulation phase may stall, and a deeper correction might ensue if traders continue to move their tokens onto exchanges for sale.

Conclusion

Jupiter (JUP) finds itself at a critical juncture. The formation of a bullish ‘cup and handle’ pattern and positive technical indicators suggest that the token could be on the verge of a major rally, potentially reaching as high as $1.8. However, the ongoing selling pressure, evidenced by negative Funding Rates and increased Exchange Net flow, presents a significant challenge.

Traders should keep a close eye on the $1.0914 resistance level, as its outcome will likely dictate the short-term direction of JUP’s price. A successful breach could see the token soaring to new heights, while failure to do so might lead to a temporary decline as market participants take profits and selling pressure mounts.