Jupiter Exchange Greenlights $3 Billion Burn– How Will This Impact JUP Price?
JUP price recovers 28% as a new proposal offers 30% supply reduction. More upside expected for JUP.
Key Takeaways
- A proposal to burn 30% of JUP’s supply passed with 95% voting in favor.
- The burn is expected to increase both Jupiter’s scarcity and market value.
- There could well be a new bullish phase for JUP.
The Jupiter Exchange community has overwhelmingly voted in favor of a monumental proposal to burn three billion JUP tokens, constituting about 30% of the current supply.
This proposal is anticipated to significantly reduce the token supply, potentially enhancing its scarcity and market value.
Following the vote, JUP’s price has rebounded by 28%, recovering from the losses on Aug. 5. Could Jupiter continue to rally?
JUP Burn Plans Voted Through
The proposal to burn JUP tokens, worth approximately $2.37 billion over six months, received overwhelming support, with 95% of votes in favor. Proponents believe this move will make JUP more scarce, potentially raising its value.
The tokens designated for burning were originally allocated to the Jupiter Exchange team. This decision was influenced by feedback from JUP holders.
The burning process will be phased to allow the market to adjust smoothly to the supply reduction, and Jupiter will provide regular updates on its progress.
Jupiter Price Analysis
On April 1, JUP peaked at an all-time high of $1.85, marking the end of a significant uptrend that began in February from $0.45.
Following this peak, JUP entered a prolonged bearish period characterized by a descending triangle pattern. This lasted until the token dropped to $0.64 on July 5, 2024.
Since hitting its low, JUP has shown promising signs of recovery, climbing over 90% to reach $1.22 by July 29. This followed a five-wave pattern after breaking its descending resistance, indicating a potential new bull phase.
During its downturn, JUP’s price sharply fell by 45%, yet it managed to stay above its July 5 low, hitting $0.66 on Aug. 5. The daily chart showed the RSI dipping into the oversold zone, prompting a bounce.
Concurrently, the MACD began to converge its moving averages, signaling a possible new uptrend.
There is a strong chance that the July 29 decline was either a corrective wave or marked the end of a prolonged correction from the all-time high. In either scenario, a bullish upturn seems likely, with JUP potentially reaching values above $2 by year’s end.
A higher low will be the strongest confirmation of this uptrend. While JUP has already achieved a higher low compared to July 5, another higher low following the decline since July 29 would solidify buyer confidence and indicate a stronger uptrend.
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