Why could JUP rise by 30%?

• Jupiter price is retesting the support area between $0.708 and $0.637, with a reversal coming.
• Chain data paints a bullish picture as JUP’s long-short ratio is over one.
• A daily candle close below $0.637 would invalidate the bullish thesis.

Jupiter (JUP) rallied 4.4% after testing a key support area on Wednesday. Despite a slight 1.4% drop on Thursday, a sustained reversal looks likely if the support area continues to hold. A long-short ratio that exceeds one further validates the bullish outlook.

Jupiter price is set for a rise after holding the validated support

Jupiter price recovered 4.4% after retesting the major support area between $0.708 and $0.637 on Wednesday. This support area also coincides with the lower band at the volume profile level (the total volume traded at a given price level in a given period in increasing volume) around $0.718, making this a key reversal zone. At time of writing on Thursday, it is trading slightly down 1.4% at $0.723.

If this support area holds, JUP could rise 30% to hold its daily resistance at $0.921.

The Relative Strength Index (RSI) and the Awesome Oscillator on the daily chart are trading below their respective neutral levels of 50 and zero. Both indicators need to trade above their neutral levels for bullish momentum to be sustained. Such a development would add a tailwind to the recovery rally.

JUP/USDT Daily Chart

Coinglass Jupiter’s long-short ratio is also 2.01, supporting the bullish outlook. This report reflects bullish sentiment in the market as the number above suggests that more traders are anticipating the asset’s price to rise.

Diagram of Jupiter’s long-short ratio

However, if Jupiter’s daily candle closes below the lower band of the $0.637 support area, the outlook will change to bearish. This scenario could lead to an 8% decline to retest the March 7 low of $0.585.