Jupiter, a decentralized exchange aggregator, recently launched the airdrop of its native token, JUP, leading to significant trading activity. Within just six hours of opening the claim period, JUP saw more than $450 million in trading volume on Jupiter’s platform.
On the other hand, the price of its native token, JUP, remains calm. It is stuck between $0.60 and $0.70 after reaching a peak of $2.
A Twitter user known as ‘Ted talks macro ‘ on the platform X (previously Twitter) said that Jupiter processed 1.2 million transactions in the first hour after JUP claims began. Adding to this, Mert Muntaz, CEO of Solana infrastructure provider Helius Labs, revealed that Solana handled up to 1,400 transactions per second during that time. He emphasized the complexity of some of these transactions, which involved intricate swaps using Solana’s advanced features.
Despite a few reported issues with claiming JUP tokens attributed to the RPC (Remote Procedure Call) service being used, users like ‘Aylo ‘ on X found that switching to Helius’ RPC service resolved these problems. The event was notable for the high JUP trading volume and the Solana network’s robust performance under intense transactional pressure.
At its release, the price of the JUP token reached a peak of $2, but it came down quickly. The 15-minute candle closed at $1, leaving a larger wick. This caused a reversal, with the price falling to $0.56 at its lowest point.
Considering the limited price history, there are only a couple of things we can discuss and anticipate. First, Jupiter appears to be searching for a plateau after its initial discovery. It might find one above $0.50, but this is still unconfirmed.
It formed a descending triangle, which was rejected when it tried to interact with its resistance level. We could see it going below $0.50, with the $0.40 area looking promising for a support plateau.
Either way, JUP should start consolidating, forming a horizontal range where the price will continue moving sideways before it starts a decisive uptrend. The 15-minute chart Relative Strength Index (RSI) indicator also points out some early weakness, which is why another decline looks likely.
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.