- There has been a significant decline in daily active addresses and transactions, over the past weeks.
- Jupiter’s volume has surged while revenue hit a yearly low, adding to the bearish sentiment in the market.
Jupiter [JUP] has been in a bearish phase over the past month, recording a 34.29% decline. This sentiment has persisted, leading to an 11.38% drop in the past 24 hours.
On-chain data indicates that market participants remain bearish, suggesting the decline may not end soon. AMBCrypto found that JUP could drop to a low of $0.40.
Market activity could push JUP lower
Market activity has declined over the past month, with daily active addresses and transactions hitting new lows.
According to data from Artemis, daily active addresses plunged from 724,400 on February 10 to 433,800 at the time of analysis. This sharp decline signals reduced market participation.
This drop coincided with a significant decline in daily transactions. From a high on January 19, transactions fell to a yearly low of 1.1 million, at press time.
Source: Artemis
The decline in transactions on Jupiter is linked to the drop in active addresses, indicating reduced activity, which has contributed to JUP’s price decline.
This decline in activity has been accompanied by a spike in Trading Volume, while revenue has fallen to a new low.
At the time of writing, trading volume across Jupiter peaked at $531.9 million, a level last seen on February 12. A spike in volume alongside a falling price suggests the market is in a distribution phase, with more sellers dominating.
During this phase, Jupiter’s revenue plummeted to $7,870 from a monthly high of $27,670 and an all-time high of $149,930.
A consistent drop in revenue negatively impacts price, as it indicates lower liquidity on the platform.
Source: Artemis
With bearish sentiment prevailing, AMBCrypto analyzed JUP’s next move and found that further decline could be imminent.
A drop to $0.43 hinges on support
JUP has entered a key support zone on the daily chart, which has previously triggered price rallies on four occasions. If the same pattern holds, the asset could break the descending resistance line, leading to a rally toward $1.40.
However, if the $0.718 support level fails, JUP could see a major drop to $0.43, representing a 39% decline.
Source: TradingView
Given the current market sentiment favoring the bears, JUP is more likely to breach support and fall to the target level.
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