Jupiter [JUP] is up by more than 12% in the past 24 hours, with its weekly gains exceeding 15%. The daily trading volume jumped by 109%, to more than $80 million, fueled by discussions around the Solana ecosystem.
Apart from the capital inflow as seen in the technical outlook, fundamentals like buybacks and chain activity were pushing JUP higher. Here is how:
Why is Jupiter in an uptrend?
Jupiter Strategic Reserve was reducing circulating supply in the market while creating demand through a buyback program.
Discussions around fees have skyrocketed in the past few days. The Solana ecosystem came into the spotlight as founder Anatoly Yakovenko criticized Robinhood for preying on users, collecting fees in the frontend and backend.
As a result, these discussions have sparked network strength across the Solana ecosystem, with Raydium [RAY] also gaining by double digits.
Despite Solana’s low fees, it stood at position five among top chains, indicating network activity was high.
In fact, Jupiter controlled 10%, third among all DEX aggregators over the past 90 days, as per Token Terminal. The DEX’s sum during this period was $487.2K, six times less than that of Cow Protocol at $3.1 million.
Buyers push JUP to break past the rising trend channel
The price action of JUP is attempting to break past the rising trend channel, which has been in place since the 21st of August. The pattern suggests either a bullish continuation is coming or a short-term reversal.
Adding the net volume, which shows 1.81 million JUP were bought at press time, and the Stochastic RSI at 73, the altcoin may surge higher. But the price must stay above the ascending resistance at around $0.25.
If bears reject the price around the channel’s resistance, JUP may fall to $0.23 or to the demand zone at $0.21.
Even so, traders should be aware that bulls are still in momentum. This is evident as the Stochastic RSI has touched the overbought zone thrice this month while the Net Volume has been, on average, positive.
Final Summary
- Jupiter rallied by over 12% in the past 24 hours, fueled by buybacks and discussions around the Solana ecosystem.
- JUP price was trading inside a rising trend channel as bulls attempted to breach the $0.25 resistance zone.
