Jupiter Experiences a 10% Decline: Are Two Indicators Capable of Reversing JUP's Downtrend?
Jupiter (JUP) Faces Short-Term Selling Pressure Amid Mixed Market Signals
In the cryptocurrency market, Jupiter (JUP) has been experiencing a cautiously bearish outlook over the short term. The digital asset has seen a significant 10% price drop, bringing it down to around $0.54 as of July 29, 2025.
The spot market has been a major contributor to this decline, with approximately $1.18 million worth of JUP sold in the past 48 hours. This selling pressure indicates a shift towards a short-term bearish sentiment among investors, who fear further price declines.
However, the derivative market presents a more complex picture. On one hand, the Open Interest of JUP contracts has fallen sharply by 14.84%, amounting to over $25.4 million, according to CoinGlass. This suggests strategic selling by buyers, as over $25 million in contracts were closed.
On the other hand, the Open Interest Weighted Funding Rate for JUP remains positive at 0.0027%, indicating that overall sentiment remains bullish, despite the decline in price. However, the trend is downwards, and a dip into negative territory could lead to more liquidations and potentially flip sentiment.
Earlier in July 2025, JUP had shown strong bullish momentum, with over 40% gains in the month and Open Interest rising above $200 million. The positive funding rates near 0.011% indicated confident buyers and targets up to $0.74. However, this momentum has since weakened.
Technical indicators, such as the Moving Average ribbons and Money Flow Index (MFI), suggest a potential rebound after the sharp decline. However, this depends heavily on whether the derivatives and spot markets stabilize.
The MFI, currently at 62.70, indicates strong liquidity inflows, boosting the chances of a near-term rally for JUP. When the MFI is above 50 and trending toward 80, it suggests a near-term rally for JUP.
The Fear & Greed Index remains somewhat elevated in the “greed” zone (around 71-75), despite the price declines, indicating conflicting trader psychology.
In summary, JUP is currently facing notable short-term selling pressure and a likely price correction below $0.45, driven by spot outflows and derivative market unwinding. However, some technical indicators and positive funding rates indicate there might be a potential for a rebound if the selling pressure subsides. The market's next direction depends significantly on derivative funding rates and spot market activity, which remain closely watched indicators.
Traders should approach JUP with caution, balancing the recent bearish signals against the possibility of a technical bounce or renewed bullish momentum if market conditions improve.
Note: A green candle is forming at the current press time for JUP, but this information was not mentioned in the context of the article.
- Investors seeking to change their holdings might consider exchanging Jupiter (JUP) for another crypto token like Bitcoin (BTC) or the meme token Pepe, given the current short-term bearish outlook in the JUP market.
- Despite Solana's recent success in the marketplace, the technology behind it might be worth exploring as an alternative for developers who aren't confident about the near-term prospects of JUP.
- Even though JUP is currently experiencing short-term selling pressure, some market participants may still be hopeful for a rebound, citing positive open interest weighted funding rates and technical indicators such as the Moving Average ribbons and the Money Flow Index (MFI).
