The Jupiter token fell back for two consecutive days even as transaction volume in the Solana ecosystem increased.
Jupiter (JUP) retreated to $0.08 on Sept. 23, down from last week’s high of $0.89, giving it a market cap of over $1.098 billion.
Data from DeFi Calls shows that Solana (SOL) decentralized exchange transactions increased by 18% over the past seven days, bringing the total to over $5.27 billion. It surpassed ethereum, whose transaction volume fell by 29% to $5.1 billion.
Jupiter’s transactions have been strong: Solscan data shows it handled $587 million worth of tokens on Sept. 23, giving it a 37% market share. It has more than 10,400 active wallets.
Solana’s other major DEX networks such as Raydium, Orca, and Meteora also saw increased volumes as meme coins like Popcat (POP) and Dogwifhat (WIF) rallied.
However, there are signs recently that Jupiter's volume is declining. After peaking at $1.14 billion on September 19, it has since fallen to $580 million.
<img loading="lazy" decoding="async" width="2646" height="890" src="https://crypto.news/app/uploads/2024/09/Jupiter-DEX.jpeg” alt=”Volume of Jupiter”/>
Meanwhile, Jupiter’s total assets have increased by more than 5% in the past 30 days to over $1.17 billion, making it the third-largest player in the ecosystem.
The Jupiter token fell back a week after the developers acquired SolanaFM, a leading blockchain explorer. This acquisition is expected to help Jupiter grow its infrastructure network ecosystem.
A key challenge for the Jupiter token is its concentrated ownership structure. According to For SolanaFM, The top ten addresses on the network hold almost 92% of all tokens in circulation. A highly concentrated token is often at risk if these holders decide to liquidate their positions.
Jupiter found strong support
<img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/09/Jupiter-Price.png” alt=”Jupiter Price”/>
On the daily chart, the Jupiter token found strong support at $0.6577, a level it struggled to cross in July, August, and September. This indicates that it has formed a triple bottom pattern with a neckline at $1.2200.
Jupiter has also held above the 78.6% Fibonacci retracement level and remains above the 50-day and 25-day moving averages.
Therefore, Jupiter is likely to resume its uptrend as long as it stays above both moving averages and last week's high of $0.8932.
