Jupiter Failed to Break $0.20. Will Retest it or Plummet Further?

Jupiter is trading at $0.192 at the time of writing, down a few percent from Tuesday’s high. Nonetheless, it prints a doji as it is currently at its opening price.

The current is significant, as it indicates a drop in volatility given the previous day’s price action. The altcoin surged to a high of $0.199 on Monday, attempting $0.20. Although it failed, it attained a crucial milestone.

The previous session was the first time in almost two months that Jupiter had tested the barrier. It also has significant trading volume on the day, leading to a retest. Cumulatively, it gained over 12% in two days.

It is also worth noting that the uptick happened when the crypto market was grappling with notable negative fundamentals. It leaves many wondering why it surged when the general sentiment was bearish.

A quick sweep through the project’s X account shows no fresh announcement that could have triggered the hike. However, moving the search back reveals an incentive program launched by the Jup Lend on Apr 7.

Following the announcement, prices pumped almost 7%.  Although it retraced the next day, it has since seen a significant uptrend. The asset may be experiencing spillover from this event as investors continue to participate in the program.

Since April 7, JUP has gained a whopping 20%. In response to this trend, the relative strength index peaked at 68, suggesting room for a little more. Per this metric, the altcoin may retest $0.20 again.  However, aside from the current candle, several indicators suggest the upward momentum is waning.

Jupiter Has Peaked

Previous price movements indicate this is not the first time prices have retested the $0.20 barrier in the last three months. The token tested the mark twice in the first week of March, but failed to break it. It attempted the mark again during the first week of February.

However, that trial was successful, and prices soared to $0.21. Looking back at January, the asset also struggled to break this key level.

In all of these attempts, the successful ones took more than one trial. They also had a pattern; prices lingered around $0.188. Although prices are within the highlighted zone, the current structure does not align with those seen in previous flips.

Aside from the previous pattern, the asset also flipped bollinger’s upper band. It is currently trading outside the band. Since reclaiming flipping the SMA on Apr 1, prices have trended between the upper middle band.

The latest breakout means that prices will retrace in the coming days to retest the middle band. The current candle, which indicates that the upward momentum is waning, suggests the decline to the SMA may have started. Considering this, the altcoin may be gearing up for 10%-12% dip this week.

Drawing lessons from the previous retests of the $0.20 barrier, Jupiter may retrace even lower. The last two attempts at the mark have resulted in a massive downtrend. For example, the one in February preceded the Feb 5th dip, while the March led to a four-day decline.

In summary, there’s a slim chance the asset will retest the resistance based on the RSI. However, previous price movements and the bollinger suggest the uptrend is overdue.

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