Jupiter (JUP) has experienced a meteoric rise, surging 50% in the crypto markets. However, a looming threat emerges: a significant token unlock could shift the trend. Is it time to sell or strengthen your position ? Here's our analysis.
The cryptocurrency Jupiter (JUP) has been experiencing a genuine upturn in recent weeks. We’re seeing a growth of over 50% in just one month. After falling to a weekly low of $0.5215, the token reached a local high of $0.6574, marking an impressive jump. Despite this strong performance, JUP still remains far from its all-time high of $2.00 recorded in January 2024.
On-chain and derivatives data indicate heavy trading activity on Jupiter. The 24-hour spot trading volume has surged by 372%, reaching $189.8 million, signaling renewed investor interest. On the derivatives side, volume has also increased by 238.5% to reach $393.1 million. Additionally, open interest has grown by 22.5%, reflecting an increase in futures positions.
However, one event could disrupt this bullish momentum. According to Tokenomist data, 53.47 million JUP tokens, valued at approximately $33 million, are scheduled to be unlocked on July 28. This represents about 1.28% of the current circulating supply of 3 billion tokens. So far, only 42% of the 7 billion JUP tokens have been released.
Token unlocks are often accompanied by selling pressure, particularly when market sentiment is positive. Although not all unlocked tokens are necessarily sold, the increase in supply could slow the upward momentum. This would be especially true if traders decide to take their recent profits.
On the technical front, Jupiter’s daily chart shows a clearly bullish trend, with the price moving along the upper Bollinger Band. The most recent candle closed at $0.6207, just below the upper limit at $0.6378, suggesting strong positive momentum.
With a RSI of 65.7, the relative strength index is approaching the overbought zone. This indicates caution is needed if momentum slows, but also demonstrates solid buying interest. Short-term profit-taking could be triggered by a move above 70, confirming overbought conditions.
If JUP manages to break above $0.6574 with significant volume, it could then target $0.70, supported by increased positioning in derivatives and trend strength. Sustained momentum could even allow it to reach the psychological level of $0.75.
However, a pullback to the middle Bollinger Band around $0.54 wouldn’t be surprising if the support zone of $0.60-0.58 isn’t maintained. This would be particularly likely after the token unlock. A drop back to $0.50, where a previous accumulation phase occurred, could also be considered if it breaks below this level.
To take advantage of the excitement around JUP, here’s a guide to easily buy it on Bitget :
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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