Recent Market Trends for Jupiter (JUP)

Bearish Sentiment and Price Decline

There has been a significant decline in daily active addresses and transactions over the past weeks. Jupiter’s volume has surged while revenue hit a yearly low, contributing to the overall bearish sentiment in the market.

Jupiter (JUP) has experienced a bearish phase over the past month, recording a 34.29% decline, with an additional 11.38% drop in the last 24 hours.

On-chain data indicates that market participants remain pessimistic, suggesting that this decline may continue. AMBCrypto noted that JUP could fall to a low of $0.40.

Market Activity and Its Impact on JUP

Market activity has diminished over the past month, with daily active addresses and transactions reaching new lows.

According to data from Artemis, daily active addresses fell from 724,400 on February 10 to 433,800 during the analysis period. This sharp decline indicates reduced market participation.

This drop aligns with a significant decrease in daily transactions. From a peak on January 19, transactions have fallen to a yearly low of 1.1 million.

The reduction in transactions on Jupiter corresponds with the decrease in active addresses, revealing reduced activity that has contributed to JUP’s price decline.

Interestingly, this decline in activity is coupled with a spike in trading volume, while revenue reached a new low. Trading volume across Jupiter peaked at $531.9 million, a level last seen on February 12. The spike in volume coinciding with a falling price implies the market is in a distribution phase, dominated by sellers.

During this period, Jupiter’s revenue plummeted to $7,870 from a monthly peak of $27,670 and an all-time high of $149,930. A continuous drop in revenue adversely impacts price, signaling lower liquidity on the platform.

With a prevailing bearish sentiment, AMBCrypto analyzed potential future movements for JUP, concluding that further decline appears likely.

Critical Support Level for JUP

JUP has approached a key support zone on the daily chart, which has previously triggered price rallies on four occasions. If this pattern holds, the asset could potentially break the descending resistance line, leading to a rally towards $1.40.

However, if the $0.718 support level fails, JUP could experience a significant drop to $0.43, indicating a 39% potential decline.

Given the current market sentiment favoring bearish trends, JUP is more likely to breach support and reach this target level.