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Jupiter (JUP) Price Bounces 65% — Teases Breakout After Moonshot Stake Acquisition

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Jupiter (JUP) announced the purchase of a stake in Moonshot.
  • The price trades inside a critical confluence of resistances at $1.25.
  • Can Jupiter maintain its momentum and break out above this level?

There were several positive Jupiter news this week. On Jan. 26, at Catstanbul, Jupiter announced  it acquired a majority stake in Moonshot, the self-custodial application that gained popularity after the launch of Donald Trump’s “TRUMP” memecoin. The same day, Jupiter announced the acquisition  of SonarWatch, aiming to create a Solana portfolio tracker.

Finally, Jupiter announced that 50% of its protocol fees will go toward JUP buybacks and announced a 3 billion token burn . Based on its Total Value Locked (TVL), Jupiter is the third biggest protocol in Solana  at $2.82 billion, trailing only Jito and Raydium at $3.63 and $2.97 billion, respectively.

As for its price movement, JUP attempts to break out above a confluence of important resistances at $1.25. This could pave the way for a new all-time high price if successful. Let’s look at the charts and see how likely that is.

Jupiter Reaches Resistance

Since July 2024, the Jupiter price has increased inside an ascending parallel channel, validating the channel’s support and resistance trend lines numerous times. More recently, JUP bounced at the channel’s support trend line in January (white icon), starting a 65% upward movement toward the resistance.

The JUP price reached the confluence of resistances at $1.25 today. A horizontal resistance area alongside the 0.5 Fibonacci retracement resistance level and the channel’s resistance trend line creates the resistance. So, a breakout above it is imperative to confirm that the trend’s direction is bullish.

The Jupiter price has not traded above this level since April, except for a brief upward movement in November (black circle) which could not be sustained. If a breakout happens, the JUP price can increase to the all-time high of $1.84.

Jupiter Breakout
JUP/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators give a bullish Jupiter prediction, suggesting the breakout will occur. Before the upward movement, both the Relative Strength Index (RSI) and Moving Avearge Convergence/Divergence (MACD) generated bullish divergences (green).

Now, the indicators have crossed above their bullish thresholds at 50 and 0, respectively. These are both positive signs, validating the divergences and implying a breakout is forthcoming.

Can JUP Price Break Out?

Jupiter’s wave count is also positive. The most likely count suggests that JUP completed a five-wave increase (white) starting in February and has been finishing an A-B-C correction (black) since then.

If the count is accurate, wave C ended with a truncation and a new upward movement has started. It is unclear if this new move is part of wave C or wave three in the long-term. In any case, a significant price increase is likely.

JUP Count
JUP/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

If both increases have the same length, the JUP price can reach a high of $2.12, an upward movement of 75% measuring from the current price. Then, the reaction once the price gets there can help determine if this is the end of the increase or just wave three in another five-wave upward movement. In any case, the $2.12 are presents a likely target for a local top.

Jupiter All-Time High

Both Jupiter news and the price action are positive, predicting that new highs are likely. Once the JUP price closes above $1.25, it will likely increase rapidly toward the all-time high, possibly targeting $2.13.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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