Jupiter (JUP) Price Prediction: Will the JUP Airdrop Trigger a 21% Drop to $0.63?

On Wednesday, Solana-based decentralized exchange (DEX) Jupiter launched its highly anticipated Jupuary airdrop, distributing 700 million JUP tokens

Solana-based decentralized exchange (DEX) Jupiter launched its highly anticipated Jupuary airdrop on Wednesday, distributing 700 million JUP tokens to over 2 million wallets. The total value of the airdropped tokens amounts to approximately $500 million.

This event has sparked a wave of selloffs, putting substantial pressure on the token’s price.

Jupiter’s Airdrop Triggers Selloff

On Thursday, Jupiter airdropped 700 million JUP tokens to 2 million eligible wallets. However, following the distribution, JUP has seen a selloff.

The massive influx of tokens into the market has led traders to sell their holdings for profit, contributing to the downturn.

At press time, the altcoin trades at $0.79, showing a 9% price drop in the past 24 hours. Meanwhile, its trading volume surged 166% during the same period, totaling $609 million. This confirms the surge in JUP selloffs among market participants.

When an asset’s price decreases while its trading volume increases, it indicates significant selling pressure, with many traders exiting their positions.

Moreover, readings from JUP’s Moving Average Convergence Divergence (MACD) indicator show the rising selling pressure. At press time, the token’s signal line (orange) is about to cross above its MACD line (blue).

This indicator measures an asset’s price momentum and trend direction. When set up this way, it indicates a potential bearish crossover. This suggests that selling pressure is increasing, signaling a downtrend in the asset’s price.

JUP Price Prediction: A 21% Drop to $0.63 or a Potential Rally to $0.95?

If bearish pressure strengthens, JUP’s price could fall to $0.63, a low it last reached in July 2022. This represents a 21% drop from its current value.

On the other hand, if buying activity resurges, JUP’s price could rally past resistance at $0.81 and attempt to trade at $0.95.