Date: Sat, March 08, 2025 | 07:32 AM GMT
The cryptocurrency market remains in a corrective phase following the November rally. One of the hardest-hit altcoins in this downturn has been Jupiter (JUP), the DEX token, which has suffered a sharp 40% correction over the past two months.
Currently, JUP is trading around $0.56, with a 6% decline today. The 23% weekly drop has led to a crucial breakdown, indicating that further downside may be ahead.
Source: Coinmarketcap
Breakdown of Key Support
The weekly JUP chart shows that the price has been trapped within a prolonged descending triangle pattern for the past year. The recent downturn, which began in early December after a rejection at $1.44, has now pushed JUP below the critical support zone at $0.62-$0.74.
With JUP failing to hold this support, the price has now dropped to $0.56. If the bearish momentum continues, the next major support zone is in the $0.43-$0.45 range, marked in the gray area on the chart. This level represents a potential bottom but is still 23% below the current price.
The MACD indicator on the weekly timeframe remains in a bearish phase, with the MACD line staying below the signal line. Additionally, the histogram continues to show increasing red bars, confirming sustained selling pressure. Unless there is a strong reversal soon, JUP could remain in a downward trajectory.
Can JUP Recover?
While the outlook appears bearish, there is a chance for JUP to recover if this breakdown turns out to be a fakeout. If bulls can reclaim the $0.62 support level, it would invalidate the bearish structure and open the door for a possible rebound.
Final Thoughts
JUP has broken a key support level, and if it fails to reclaim $0.62, further downside toward $0.43-$0.45 remains likely. The MACD signals ongoing bearish momentum, making a recovery uncertain in the short term. However, if JUP can invalidate the breakdown, a reversal could still be possible. Traders should watch price action closely in the coming weeks.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
