Jupiter (JUP) Drops 16% and Loses Support Level, More Downside Likely

Key Takeaways

• Jupiter’s price has fallen below the 20 and 50 EMAs, indicating a bearish trend.
• The funding rate has turned bearish, suggesting traders do not expect a bounce.
• With overhead resistance at $1, JUP’s price will likely decline toward $0.63.

Over the last 30 days, Jupiter’s (JUP) price has decreased by 16%. This decline comes after the “Jupuary” airdrop, which led to notable selling pressure.

JUP’s price has slipped below a crucial support level following this decline, raising concerns about a prolonged downtrend. Now, the question is: Will JUP find a new support zone, or is a deeper correction close?

JUP Experiences More Losses

As of this writing, Jupiter’s price is around $0.75, a 25% decrease from the $1 mark it hit on Feb. 14. According to CCN, this decline was due to selling pressure and a decline in demand.

But beyond that, the technical outlook offers more insight into JUP’s price action and performance. On the 4-hour chart, Jupiter has fallen below two key Exponential Moving Averages (EMAs).

As seen below, the 20 EMA (blue) is around $0.76, while the 50 EMA (yellow) is around $0.81, which is crucial support. These indicators’ positions are above JUP’s current price.

Typically, the trend is bearish when the EMA is above the price. When it is below it, the trend is bullish. Therefore, the current JUP technical setup presents a bearish scenario that could lower the price.

Amid this decline, Santiment’s data shows that JUP’s funding rate has turned negative.

The funding rate is the cost of holding an open position in the derivatives market. When the metric is positive, it means that long-positioned traders are paying a funding fee to shorts, and the average sentiment is bullish.

Therefore, this position indicates that the sentiment around JUP is bearish since shorts pay the funding fee. Should this remain the same, Jupiter’s price will likely keep trending downwards.

JUP Price to Face Another Downtrend

Looking at the technical perspective again, the daily chart shows inconsistencies in Jupiter’s price action. As shown below, JUP’s price appears to have found support around $0.72.

However, the super trend indicator shows that it will likely face resistance ahead. This is because the red line of the Supertrend rests about the $1 mark.

Therefore, as JUP’s price attempts to reach this point, it might get pushed back. Using the Fibonacci retracement level, JUP has fallen below the 0.236 resistance at $0.82.

Due to this drop, the next target for the price could be around $0.63. However, if the broader market condition gets extremely bearish, the downturn could accelerate, possibly below $0.50.

Alternatively, the trend could change if Jupiter’s price breaks above the resistance at $0.82.

In that scenario, the altcoin could rise to $1.13. If buying pressure increases, the token’s value could rise as high as $1.44.