Assessing the chances of Jupiter [JUP] climbing above $2 due to THIS sample

Jupiter is perhaps forming one other bullish flag sample on the charts quickly
Token may face a liquidation barrier close to the $1.2-level

Jupiter [JUP] has been consolidating for a number of days now, with its worth motion on the charts being pretty marginal. Nevertheless, there could also be extra to the story right here because the altcoin quietly climbed above yet one more bullish sample.

Will this be the set off that’ll push the token to $2 within the coming days?

Jupiter’s secret plan

Because of the crypto’s latest bout of consolidation, its drop in volatility had a detrimental affect on its social metrics. In reality, the token’s weighted sentiment declined sharply – An indication of accelerating bearish sentiment throughout the market.

Supply: Santiment

Nevertheless, traders shouldn’t be impatient, particularly since Jupiter might need a trick up its sleeve too. World Of Charts, a well-liked crypto analyst, shared a tweet highlighting a vital replace. In accordance with the identical, JUP silently broke above one other sample. This bullish falling wedge sample emerged within the first week of November.

Since then, Jupiter’s worth has consolidated inside it, solely to breakout on 29 November. If the evaluation is to be believed, this may enable the token to kind one other sample, which has the potential to push JUP to $2 within the coming weeks.

Supply: X

What’s subsequent for JUP?

To be exact, JUP may quickly kind a bullish flag sample. If that occurs, and JUP breaks out, it’d hit $2. Due to this fact, traders may see JUP’s worth drop after it first registers a number of tall candlesticks. To see whether or not that’s attainable, AMBCrypto assessed JUP’s on-chain knowledge.

On the time of writing, there have been extra quick positions available in the market than lengthy positions, with the identical evidenced by the sharp decline in Jupiter’s lengthy/quick ratio. This may be attributed to the growing bearish sentiment available in the market due to JUP’s sluggish worth motion.

Supply: Glassnode

Nonetheless, the token’s Open Curiosity (OI) has additionally moved sideways recently. This advised that traders’ curiosity within the token hasn’t been growing a lot. And, this might set off a development reversal within the coming days.

On high of that, market indicators additionally supported the potential for a bullish development reversal.

As an illustration – The Relative Energy Index (RSI) has been shifting north, indicating an increase in shopping for stress. Jupiter’s worth gave the impression to be testing the assist at its 20-day SMA too. Within the occasion of a profitable take a look at, supported by excessive shopping for stress, it gained’t be bold to count on a recent bull rally, earlier than it varieties a bullish flag.

Supply: TradingView

Lifelike or not, right here’s JUP’s market cap in SOL phrases

Nevertheless, the token will face an important barrier going ahead.

Jupiter’s liquidation heatmap revealed that the token’s liquidations will rise sharply close to $1.2. Typically, excessive liquidation leads to worth corrections. Due to this fact, it should soar above that stage to eye $2 within the close to future.