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Jito Price Struggles to Maintain Increase Despite Phantom Collaboration – Will JTO Bounce or Break Down?

Last Updated 6 days ago
Valdrin Tahiri
Last Updated 6 days ago

Key Takeaways

  • Jito announced a collaboration with the Phantom wallet on June 6.
  • The JTO price trades inside the previous all-time high resistance of $3.55.
  • 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, an increase of 240% since the start of the year. However, it has fallen since and even created a lower high in May.

More importantly, the price risks breaking down from a long-term horizontal support area. If it does, it will confirm that the upward movement is over, and a new bearish trend has started. On the other hand, a bounce will keep the bullish hopes alive.

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.

JTO Price Trades Inside Support
JTO/USDT Daily Chart | Credit: TradingView

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.

JTO Wave Count
JTO/USDT Daily Chart | Credit: TradingView

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 Faces More Downside Despite Phantom Collaboration

Even though the JTO price trades inside a horizontal support area, the price action besides it is bearish. Furthermore, the wave count predicts more downside. As a result, a breakdown from the $3.55 area and a drop to the $2.30 support is the most likely future scenario.

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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