Jupiter (JUP) has recently registered some minor gains, rising by 3.50% in the last day. However, earlier market losses mean the altcoin experienced a 1.38% decline in the past seven days. Amid this volatile price action, renowned market expert Ali Martinez postulates that the altcoin is in imminent danger of a major price fall.
Bearish Flag Forms On JUP Chart: Key Support To Watch
In an X post on Saturday, Martinez reports the formation of a potential bearish flag on the JUP 4-hour chart. The bearish flag is a continuation pattern that hints at a sustained downtrend, following a prolonged price fall, known as the flagpole, which was observed in early March when prices of Jupiter fell from $0.83 to $0.48 within just seven days.
The bearish flag represents a brief period of consolidation in an upward or sideways direction following the price decline and is typically followed by a continuation of the downward trend. For Jupiter, this flag is characterized by prices oscillating between $0.56 (resistance) and $0.50 (support).
A decisive price fall below the $0.50 region would substantiate the bearish flag, possibly leading to a substantial price decline. Based on the length of the initial flagpole, Martinez predicts that JUP prices could slide as low as $0.41, indicating a potential 21.15% decline from current market values.
Conversely, a strong price breakout above the resistance at $0.56 could invalidate the bearish flag, suggesting a potential reversal. In this scenario, Jupiter could rise towards the next significant price resistance around $0.83.
JUP Price Outlook
Amid a general crypto market correction, JUP has suffered substantial losses over the last month, losing 30.15% of its value. This downward trend has persisted despite efforts by the Jupiter exchange to manage the token’s supply through a substantial buy-back strategy that involves using 50% of protocol fees.
However, the Relative Strength Index (RSI) on the token’s daily chart indicates a recent rebound from the oversold zone, suggesting that a price reversal could be on the horizon.
According to analysts from Coincodex, the general sentiment in the JUP market remains bearish, with a Fear & Greed Index of 32 indicating that investors are highly cautious about market engagement at this time. Nonetheless, these analysts express strong confidence in JUP’s bullish potential, projecting a price gain of 227% in the coming month.
At press time, Jupiter continues to trade at $0.52, following a price increase of 3.50% as noted earlier. Additionally, the asset’s daily trading volume has surged by 21.78%, reaching a total of $42.57 million.
