Crypto Analyst Predicts $JUP Is Set To Plummet To $0.41 If Price Exits Flag Pattern

Crypto analyst Ali Martinez has issued a bearish forecast for Jupiter Token ($JUP), warning that the asset could experience a significant price drop if it exits its current flag pattern. 

In a post on X, Martinez highlighted that $JUP, currently trading around $0.50, is approaching a crucial moment in its market structure. 

The flag pattern, a widely recognized technical indicator used to predict price trends, appears to be nearing its conclusion. 

If $JUP fails to maintain its support level, it could break downward, potentially plunging to as low as $0.41. 

Traders and investors are closely watching this formation as the token’s price action nears a decisive phase.

Bearish Flag Pattern Suggests Downside Risk

The flag pattern identified in $JUP’s chart suggests a consolidation period following a prior price movement, which often leads to a continuation of the trend. 

Given the previous downward trend, a breakout below the flag’s lower boundary would likely confirm a bearish outlook. 

The recent analysis could trigger increased selling pressure, pushing the token toward the predicted $0.41 target. 

Analysts note that if this breakdown occurs, it could reinforce negative sentiment among traders, leading to further losses. 

However, if $JUP can maintain support at its current level, it may invalidate the bearish scenario and stabilize in the short term.

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Current Market Conditions Show Mixed Signals

Despite the bearish prediction, $JUP has shown minor gains in the past 24 hours. 

Currently, the token is priced at $0.5271, reflecting a 3.1% increase within the last day and a marginal 0.01% increase over the past week. 

With a circulating supply of 2.7 billion JUP, its market capitalization stands at approximately $1.42 billion. 

However, these slight gains do not necessarily indicate strength, as market volatility remains high. 

The token’s recent price action suggests uncertainty, with investors waiting for a clearer signal before making further moves.

Open Interest Decline Indicates Weakened Market Confidence

A key indicator that supports the bearish outlook is the decline in open interest for Jupiter ($JUP). 

According to data from Coinalyze, the open interest for $JUP has increased by 2.39% in the past 24 hours, bringing its current valuation to $61.7 million. 

A decline in open interest typically signals a reduction in trader participation, suggesting that investors may be stepping away in anticipation of further downside. 

Additionally, the Relative Strength Index (RSI) for $JUP is currently at 68, which places it in a neutral-to-bearish zone. 

If RSI trends downward, it could indicate weakening buying momentum and an increased likelihood of a price drop.

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