29 Jul 2024 Simon Briggs
Jupiter (JUP) Increases Exponentially, Users To Vote On Token Supply Reduction Proposal
A noteworthy proposal has been made by Jupiter, a well-known decentralized exchange (DEX) on the Solana network, to lower the total quantity of its JUP coin by thirty percent. The idea aims to enhance token scarcity and potentially raise its value by decreasing annual airdrops and team allotment. This Thursday is the community's vote on the proposal.
“This will cut the fat off the FDV, activate the community to really understand JUP tokenomics, as well as address concerns around high levels of emissions and motivate everyone towards growing the meta together,” Meow, founder of Jupiter, noted.
Notwithstanding the advantages of this plan, some members of the Jupiter community fear it would cause short-term sell-offs. Furthermore, they believe that because the benefits will be smaller, the scheme may discourage user participation.
In the run-up to the elections, JUP has increased significantly. It is currently selling at $1.15, indicating an 11.36% increase over the last seven days.
Source: CoinMarketCap
Technical analysis
The following is revealed by an analysis of Jupiter's price movement:
Resistance Levels: $1.2420 and $1.8705 are predicted to be the main resistance levels. These price levels show potential areas of price pressure.
Support Levels: $0.7182 and $0.4590 are the two key support levels. These are possible places where the price might stabilize and attract purchasing interest.
The technical indications as of right now indicate:
50-Day Moving Average (50MA): The current price is $1.15, whereas the 50MA is $0.8729. Given that the price is above the 50MA, this points to a positive trend.
The market is neutral, as indicated by the Relative Strength Index (RSI), which is currently at 58.0688. A value of more than 70 would be considered overbought, whereas a value of less than 30 would be considered oversold.
Relative Volume (RVOL): A lower RVOL than the cutoff line indicates a lower volume of trading.
Average Directional Index (ADX): A weak trend momentum is indicated by the ADX score of 16.6284.
Relative Volatility Index (RVI): The RVI indicates excessive volatility at 56.50.
Price prediction
Recent charting indicates the existence of a horizontal channel pattern, which suggests that Jupiter's price in 2024 may vary between $0.4590 to $1.8705. JUP might climb significantly and possibly hit the top resistance levels if the good trend keeps up. On the other hand, adverse market circumstances may cause the price to move in the direction of the lower support levels.
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