Jupiter (JUP) rebounded from a $0.14 slide and hit a two-week high of $0.176. In doing so, Jupiter reversed its short-term moving averages, EMA20, indicating strong bullish momentum.
At the time of writing, the altcoin was trading at $0.172, up 17.13% on the daily charts, adding to its weekly gains. The explosive price increases confirm the strengthening dynamics of all market players.
In fact, after JUP fell to a low of $0.14, it saw renewed demand as new users took the opportunity to take a position. Daily active addresses reached 13.3K, an increase of 200, indicating increased network usage.
Source: Santiment
Jupiter sees new capital inflows
Interestingly, investors have taken advantage of recent market weakness to deploy capital. On the futures side, the altcoin saw $25.01 million in inflows versus $23.05 million in outflows.
As a result, its net flow increased 194.3% to $1.96 million, reflecting increased demand for futures positions.
Source: CoinGlass
Meanwhile, the altcoin’s open interest increased 22% to $44.07 million, while derivatives volume soared 53% to $101 million. An increase in these two indicators further validated increased demand for futures positions.
However, market participants on Binance and OKX appear positioned for further pullback. Indeed, the altcoin’s Long/Short ratio was maintained below 1, around 0.99, with Binance at 0.93 and OKX at 0.89.
Source: CoinGlass
A ratio below 1 indicates higher demand for short positions, suggesting that most participants are expecting a further decline.
Is the upward momentum sustainable?
Jupiter showed strong momentum, as investors rushed into the market to accumulate at a discount following the recent broader market decline.
As a result, the bullish momentum of the altcoin has strengthened. Its relative strength index (RSI) rose to 55, entering bullish territory.
At the same time, the price has switched to the EMA20 and is currently testing the EMA50, indicating strong bullish momentum.
When these momentum indicators reach such levels, it demonstrates buyer confidence and often follows higher prices.
Source: TradingView
Therefore, if the prevailing sentiment holds and more capital flows, JUP will tip the EMA50 to $0.17, return $0.2 and observe the EMA100 at $0.21.
However, this bullish outlook faces a major risk and could hinder a possible continuation of the trend. In the spot market, after Jupiter rebounded, investors who were underwater rushed to cash out.
Source: CoinGlass
Altcoin exchange inflows outpaced outflows, with Spot Netflow soaring 145% to $677,000. The market recorded $5.6 million in inflows versus $4.9 million in outflows.
If this selling frenzy continues and intensifies, a market downturn remains imminent. Thus, JUP could fall again to $0.14 before attempting another pullback.
Final summary
- JUP surged 17%, reaching a local high of $0.176 amid a broader market rally.
- Jupiter saw a surge in speculative demand, but the threat of a pullback remained as profit-takers rushed to cash out.
