Jupiter price is trending as the price broke out from a major bullish chart pattern. Normally, the breakout is aggressive, but due to prevailing market conditions, the JUP price lags. Nevertheless, the asset may rally as the Co-Founder of Jupiter published out a proposal to burn 30% of JUP supply from team supply. JUP price increased by 0.2% in the last 24 hours and this development sets it up for further gains.
$2 Billion Worth of JUP To Vanish
Jupiter Exchange posted on X (formerly Twitter) about a proposal to reduce the supply of the Jupiter token from the team allocation.
The Supply Reduction Proposal is live, with the key objective of providing more certainty, alignment and transparency (CAT) for all JUP holders and the community.
Vote Now: https://t.co/TRwmAq266T
This is the first of 3 J4J votes, with upcoming votes for extending Jupuaries and… pic.twitter.com/e9YUnAG1RB
— Jupiter (@JupiterExchange) August 1, 2024
The proposal on the Jupiter Exchange DAO will end on August 4 and aims to burn 30% of the total supply of JUP tokens held by the team. At the current price, this amounts to approximately $2.88 billion and would instantly become the largest token burn in crypto history.
Jupiter Exchange already enjoys the title of the largest DAO in the world and the most used decentralized exchange on the Solana blockchain.
According to Weremeow, Jupiter Exchange Co-Founder, if the proposal passes, the burn will happen slowly over six months, reducing the total supply of JUP from 10 billion to 7 billion. This development is expected to impact Jupiter price positively.
Jupiter Price to Surpass $1.5 Soon
JUP price chart shows an overall uptrend, following a breakout from a falling wedge pattern. The price has been making higher highs and higher lows since mid-June. The JUP price action is also above the 50-day exponential moving average (green line), which supports the uptrend view.
The most recent candlesticks show a pattern resembling double top, which typically indicates a bearish reversal if the price action drops below the neckline around $0.95.
The key support levels for Jupiter price are:
Support: Around $0.88 , as indicated by recent price action and previous resistance turning into support. This also coincides with the 50-day EMA.
Resistance: Around $1.11 and $1.28, where the price has tested multiple times but failed to break above.
The Relative Strength Index (RSI) is at 51.96, indicating moderately bullish momentum without being overbought. The Moving Average Convergence Divergence (MACD) line is above the signal line, suggesting bullish momentum. The histogram also shows positive values, further confirming this.
JUP trading volume increased during the breakout phase, which supports the validity of the trend. Additionally, recent volumes are relatively steady, indicating ongoing interest.
Jupiter Price Chart Analysis
If price breaks below $0.68 and fails to rally back above, it may signal market weakness, turning Jupiter price bearish and invalidating the bullish thesis. JUP price would drop lower to the next major support level of $0.49.
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