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Jupiter started trading on Friday at $0.216 but failed to surge, as buying pressure was matched by selling pressure, leaving prices relatively stable.
However, this changed following a sudden spike in selling pressure in the session starting at 15:00 UTC. The asset shed over 6% during this period and has since struggled to recover.
Current price action suggests that buying remains minimal despite normalcy returning to the market. JUP and other cryptocurrencies experienced massive selloffs as investors panicked after the Bank of Japan revealed plans to increase interest rates.
Jupiter is down by over 7% at the time of writing and shows no strong signs of recovery, indicating it may end Friday with these losses. The recent decline is not a standalone event, as the asset has been on a downtrend since Wednesday.
The downturn started as the bulls showed signs of exhaustion on Tuesday. They failed to sustain the upward momentum after the token flipped $0.25, causing prices to retrace shortly after. The sentiment worsened the next day, resulting in losses exceeding 2%.
Since the third day of the week, the asset has lost 14%, with the largest loss happening on Friday. However, the charts suggest that this may only be the beginning.
The altcoin flipped bearish across several indicators amid the persistent price downtrend. On the 1-day chart, the moving average convergence divergence printed sell signals: the gap between the 12- and 26-EMA narrowed, and a negative crossover is imminent.
The readings from this indicator raise concern, as since October, the asset has not halted any convergence; a divergence always follows. Such a negative crossover would mean further downtrends for the asset.
A closer look at the chart reveals that Jupiter has been trading within a descending triangle. The recent MACD readings suggest the decline may continue, but the asset is nearing a breakout. Such a breakout may indicate that the bottom is in. Nonetheless, per the triangle, the token may retrace below $0.18 before recovery starts.
Other indicators support the assertion that the downtrend is nearing its end. For example, the bollinger bands revealed that JUP broke below it on Friday. A short term may start in the coming hours, and momentum may wane afterwards.
Additionally, the relative strength index slipped below 30 a few hours ago. Normally, an asset that is oversold may signal a quick price recovery that would mark the end of the downturn. However, recent action in the metric indicated it slipped as low as 25 before the buyback resumed. A repeat may happen in the coming days.
Away from the charts, Jupiter continues to plummet as investors lose confidence in it. The news of Pump.Fun’s launch of its own trading platform diverted the fees from the DEX, affecting its native token. JUP has since lost several key levels.
The drop in traders’ confidence is no doubt responsible for the volatility, as the asset becomes the top loser over the last 24 hours.
Back to the charts, prices moved fast on Oct 10 when the altcoin retraced below $0.12. Although it rebounded, the move created an FVG, and prices may retrace to fill this gap.
The post Jupiter Risks Slipping Below $0.12 as Key Metric Flipped Bearish appeared first on CoinTab News.
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