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Jupiter (JUP) Volume Declines by $1B Ahead of ‘Jupuary’ Airdrop: Price Dip Expected

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Victor Olanrewaju
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Key Takeaways

  • Contrary to a few days ago, Jupiter’s volume fell from $1.46 billion to $220 million.
  • This decline happened as the project prepares to airdrop 700 million JUP tokens.
  • JUP might experience selling pressure, and this could cause a further price drop.

The trading volume of JUP, the token of the Solana-based decentralized exchange Jupiter has cratered by $1 billion between Jan. 19 and the time of writing. This drop in volume comes as the project prepares to distribute about 700 million in Jupiter airdrop to users.

While excitement around the airdrop remains high, the decline in volume seems like a warning sign. In addition to the volume, JUP is one of the top losers among the top 100 cryptos today.

This happened as the altcoin failed to replicate the same move that saw it climb by 30%  over the weekend. Based on the current situation, the JUP price could face further declines as eligible users prepare to claim their tokens.

Jupiter Volume Drops Before Major Event

On Jan. 18, Jupiter’s price climbed to $1.15, driven by a bullish engulfing candle. Interestingly, this price increase coincided with the launch of the TRUMP memecoin, as JUP was one of the few cryptos that did not experience a correction on the day.

Around the same period, JUP volume jumped as high as $1.46 billion, matching up with the price increase and backing a further uptrend. But today, the same volume has dropped to $220 million, indicating that the metric has declined by approximately $1 billion.

This drop in volume indicates waning interest in the token especially as the “Jupuary” airdrop takes place today.

JUP volume drops ahead of Jupiter airdrop
JUP Volume | Credit: Santiment 

For context, Jupuary is Jupiter’s annual event where it distributes its governance token to select users on the Solana blockchain. Unlike the first episode in 2024, which involved the distribution of over a billion tokens, this Jupiter airdrop will allocate  700 million tokens.

According to the Jupiter Exchange X (formerly Twitter) handle, the claiming process will go live at 3:30 PM today.

When claiming begins later today, the token might face intense selling pressure. This could also send the volume surging. But instead of a price hike, the anticipated sell-offs might put more downward pressure on the Jupiter token price.

Meanwhile, social dominance around the token has rising. This notable rise, which is up to 1.71%, indicating that discussions around JUP has increased when compared to other cryptos in the top 100.

JUP social dominance rises
JUP Social Dominance | Credit: Santiment 

As expected, the hike in attention is connected to the JUP aidrop. But contrary to some other instances, this surge in social dominance might not be bullish for JUP as buying pressure around it is low. If sustained, this could drive a decline in JUP’s price as stated earlier.

JUP Price Prediction: Correction Likely

As of this writing, JUP changes hands around $0.87. On the 4-hour chart, this price decrease from the $1 mark has ensured that the token is now trading below the key Exponential Moving Averages (EMA).

The EMA is a technical indicator that measures trend direction. When it is below the price, the trend is bullish and the cryptocurrency’s value tends to trade higher.

But in this case, the 20 EMA (blue) and 50 EMA (yellow) are below JUP’s value. If this trend remains the same amid the upcoming impact of the Jupiter airdrop, the cryptocurrency’s value could decline as low as $0.71.

JUP price analysis
JUP/USD 4-Hour Analysis | Credit: TradingView

However, a turnaround might happen if the volume around JUP increase and buying pressure follows. In that case, JUP’s price might climb above the 0.786 Fibonacci level and hit $1.22.

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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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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