Jito Price Reclaims $2.35 Support – Wave Count Suggests JTO Correction is Complete
Has Jito Completed Its Correction? | Credit: Hameem Sarwar
Key Takeaways
- Jito declined after its all-time high on April 3 and created a lower high in May.
- The JTO price bounced at a long-term horizontal support area at $2.35.
- Will JTO break down from this support area, or will it bounce and increase instead?
JTO started 2024 with a significant upward movement, leading to an all-time high of $5.33 on April 3. This was an increase of 240% since the start of the year. However, the price has fallen since and even created a lower high in May.
The decline triggered a breakdown from a long-term horizontal support area and led to a low of $2.10 on June 24. However, JTO bounced afterward and reclaimed the $2.35 horizontal area.
Does this bounce mean the Jito correction is complete, or will the price decline toward its all-time low?
Jito Price Bounces – Wave Count Predicts Completed Correction
The daily time frame Jito price chart indicates the decline since the all-time high in April is an A-B-C corrective structure (white). If so, the decline ended on June 24, giving waves A:C an exactly 1:1 ratio. This possibility is supported by numerous factors.
Firstly, the price created a bullish hammer candlestick the same day and reclaimed the $2.35 horizontal area the next one. Such deviations and reclaims are considered signs of a bullish trend.
Secondly, the daily RSI generated bullish divergence and moved outside of its oversold territory. Then, the MACD made a bullish cross. These are all signs of a bullish trend and align with the Jito wave count which implies the correction is complete.
If so, what is likely to follow is an increase toward the closest resistance at $3.55.
Despite this positive forecast, a daily close below $2.35 area will invalidate the bullish prediction. In that case, the correction can deepen toward the all-time low support of $1.40.
Jito Announces Phantom Collaboration
On June 6, the Phantom wallet announced a partnership with Jito, allowing users to seamlessly convert staked SOL to JitoSOL in Phantom.
With this collaboration, it aims to increase the proportion of SOL that is liquid staked, which currently stands at 6.86%. Since Solana uses a proof-of-stake consensus mechanism, a higher proportion of staked tokens helps secure the blockchain.
Jito is the top ranked Protocol in Solana based on its Total Value Locked (TVL) , with $1.85 billion. The JitoSOL liquid staking token has use case in DeFi protocols such as Kamino and Drift, allowing users the flexibility of their funds while still earning staking rewards.
Jito’s unique mechanism that accrues staking and MEV rewards provides yield of up to 15% . This means that validators profit if they select the most efficient order for processing transactions. In Phantom, the lock-up period for unstaking is between 2-3 days.
Despite this collaboration, the JTO price did not increase. Rather, it trades above the $3.55 horizontal support area, where it has been for the past week.
Can JTO Maintain Support?
The daily time frame price action for JTO is mixed. On the bearish side, the JTO price has fallen since its all-time high of $5.33 on April 3. Additionally, the price created a lower high in May (red circle). Finally, JTO broke down from an ascending support trend line and validated it as resistance on June 5 (red icon). These all point to the trend being bearish.
However, JTO still trades inside the $3.55 horizontal area. The area acted as the original all-time high resistance before the JTO price broke out in April. Now, it is possible JTO will validate it as support.
As a result, the trend can be considered bullish as long as JTO trades inside this area.
Continuing the mixed readings, the RSI and MACD do not confirm the trend’s direction. While the MACD is below 0 and the RSI is below 50, they both have started to trend upward, a sign of a potential reversal.
So, a look at the wave count can help determine if the trend is bullish or bearish.
JTO Wave Count Predicts Breakdown
The daily time frame wave count finally provides some clarity, leaning in a bearish direction. More specifically, the wave count suggests the JTO price is in wave C of an A-B-C corrective structure.
The defining trait of this movement is the smaller A-B-C structure (black) that creates wave B. Since that is trending upward, it suggests the trend is bearish, and the downward movements are impulsive.
If this is the case, the JTO price could bounce in the short-term but will eventually complete its correction near the $2.30 horizontal support area.
Despite this bearish JTO price prediction, increasing above the B wave high of $4.94 will mean the trend is bullish. In that case, a new all-time high will be likely.
JTO Price Correction Could be Complete
Because of the Jito price bounce and the proportion of its wave count, it is possible the correction is complete. The RSI and MACD readings also support this possibility. The trend is likely bullish as long as the price does not close below $2.35.
