- Jupiter Exchange is set to use 50% of the transaction costs that are generated to buy back Jup van de Markt.
- Jup could fall lower on the graph because the recent activities are not bullish.
In the last 24 hours, Jupiter [JUP] has seen a small price increase, with 1.77% won in an attempt to erase its weekly loss of 4.21%.
Although positive developments in its ecosystem offer a bullish opportunity, the Bearish activities of traders can possibly destroy this, so that Jup extends further down.
Will the basic principles of JUP last?
Jupiter Exchange, the platform behind the Jup -Token, recently announced plans to use 50% of the transaction costs generated to buy back Jup van de Markt.
Such a movement indicates that the intention of Jupiter to reduce the circulating stock Jup by buying and retaining token. This strategy is intended to cause a squeeze, so that the altcoin may be collected.
According to calculation, $ 600 million would be spent on this promotion this year, which represents 25% of the market capitalization of $ 2.4 billion from Jup.
Source: Artemis
Although this fundamental factor Bullish appears, market participants do not respond positively and there has been a decrease in active use, so that the pressure on Jup is added.
Note pressure continues to exist
Data from Artemis show a significant decrease in market activity and involvement in the Jup ecosystem, which contributes to the downward pressure on the active.
On January 23, the daily transactions with Jup 83,500, which signaled positive growth. However, this number has since fallen considerably and read at 22,800 at the time of the press.
Source: Artemis
Within the same period, the number of daily active addresses (DAA) decreased from 855,800 to 801,800, a decrease of 54,000.
The combination of falling active addresses and transactions suggests reduced activity within the ecosystem, and the price of Jup could act below the current level.
Where the next for Jup?
On the graph, Jup was recently rejected at an important level of resistance within the symmetrical channel in which it acts. This channel includes converging support and resistance levels.
If the price at the resistance level is rejected, it may be possible to actively fall lower.
In this case there are two potential levels for a decrease: firstly a basic support at $ 0.7904 and secondly the most important support for the symmetrical channel.
Source: TradingView
Read Jupiter’s [JUP] Price forecast 2025–2026
Jup was able to return from this level, which made a new attempt to break above the resistance level. If it is successful, it could reach the peak of the pattern at $ 1.44.
In general, the current market activity suggests that the Altcoin could slide further down, which leaves the $ 1 region that it recently recovered.
Credit : ambcrypto.com
