Jupiter’s $500 Million Airdrop Sparks Selloff, JUP Drops Nearly 10%
Jupiter’s $500M airdrop led to a sharp 10% drop in JUP’s value, with trading volumes surging 166%. Will it rally or continue its decline?
On Wednesday, Solana-based decentralized exchange (DEX) Jupiter launched its highly anticipated Jupuary airdrop, distributing 700 million JUP tokens worth approximately $500 million across more than 2 million wallets.
This event has triggered a wave of selloffs, putting significant pressure on the token’s price.
Jupiter’s Airdrop Triggers Selloff
Yesterday, Jupiter airdropped 700 million JUP tokens worth around $500 million to 2 million eligible wallets. Since the distribution, JUP has experienced a decline. The massive influx of tokens into the market has prompted traders to liquidate their holdings for profit, contributing to the downturn.
At press time, the altcoin trades at $0.79, noting a 9% price drop in the past 24 hours. During the same period, its trading volume is up 166%, totaling $609 million. This confirms the surge in JUP selloffs among market participants.
When an asset’s price declines while its trading volume surges, it indicates significant selling pressure, with many traders exiting their positions.
JUP Price and Trading Volume. Source:
Santiment
Furthermore, readings from JUP’s Moving Average Convergence Divergence (MACD) indicator reflect the rising selling pressure. At press time, the token’s signal line (orange) is poised to break above its MACD line (blue).
This indicator measures an asset’s price momentum and trend direction. When set up this way, it indicates a potential bearish crossover. This suggests that selling pressure is increasing, signaling a downtrend in the asset’s price.
JUP MACD. Source:
TradingView
JUP Price Prediction: A 21% Drop to $0.63 or a Potential Rally to $0.95?
If bearish pressure strengthens, JUP’s price could fall to $0.63, a low it last reached last July. This represents a 21% drop from its current value.
JUP Price Analysis. Source:
TradingView
On the other hand, if buying activity resurges, JUP’s price could rally past resistance at $0.81 and attempt to trade at $0.95.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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