Jupiter (JUP) Forms Bearish Flag Pattern Ahead of a Potential 227% Price Gain

Jupiter (JUP) has recently registered some minor gains rising by 3.50% in the last day. However, earlier market losses mean the altcoin experienced a 1.38% decline

In the dynamic realm of cryptocurrencies, Jupiter (JUP) has recently registered some minor gains rising by 3.50% in the last day. However, earlier market losses mean the altcoin experienced a 1.38% decline in the past seven days. Amid this volatile price action, renowned market expert Ali Martinez has taken to X to report the altcoin is in imminent danger of a major price fall.

Bearish Flag Forms On JUP Chart: Key Support To Watch

In an X post on Saturday, Martinez reports the formation of a potential bearish flag on the JUP 4-hour chart. The bearish flag is a continuation pattern that hints at a sustained downtrend. It follows a prolonged price fall i.e. the flagpole which was seen in early March when prices of Jupiter fell from $0.83 to $0.48 in seven days.

The bearish flag is a brief period of consolidation in an upward or sideways direction that comes after this price decline and is usually followed by a downward trend continuation. In the case of Jupiter, the flag is represented by prices moving between $0.56 (resistance) and $0.50 (support).

#JUP had a wild ride. After a strong bearish move, the 4H chart is forming a bearish flag, which is a continuation pattern.

The flagpole was formed after a sustained downtrend that saw the cryptocurrency drop from a high of $0.83 to a low of $0.48 in seven days. pic.twitter.com/91z906L33v

— Ali (@ali_chart) March 24, 2024

Therefore, a decisive price fall below the $0.50 region would validate the bearish flag resulting in a substantial price decline. Based on the length of the initial flagpole, Martinez predicts JUP prices could slide as low as $0.41, suggesting a potential 21.15% decline from current market prices.

On the other hand, a strong price breakout above the resistance at $0.56 could invalidate the bearish flag suggesting a a potential reversal. In this case, Jupiter could rise to around $0.83 at which lies the next significant price resistance.

JUP Price Outlook

Amid a general crypto market correction, JUP has suffered a substantial price loss over the last month losing 30.15% of its value. This development has occurred despite efforts by the Jupiter exchange to manage the token’s supply by using 50% of protocol fees to implement a massive buy-back strategy.

However, the Relative Strength Index (RSI) on the token’s daily chart shows a recent rebound from the oversold region indicating price reversal could be on the horizon.

According to analysts from Coincodex, general sentiment in the JUP market remains bearish with the Fear & Greed Index of 32 suggesting investors are highly cautious about engaging the market at the moment. However, these analysts are strongly confident in JUP’s bullish potential, projecting a price gain of 227% in the next month.

At press time, Jupiter continues to trade at $0.52 following a price increase of 3.50% as earlier stated. Meanwhile, the asset’s daily trading volume has increased by 21.78% and is valued at $42.57 million.