Jupiter drops 10% as $0.24 support breaks – Protocol inflows turn negative

Jupiter [JUP] was hit by the latest crypto sell-off as traders reduced exposure across risk assets. In fact, the entire crypto market was bleeding, with most established coins recording massive selling pressure. 

Amid this bearish flip, Jupiter lost the $0.24 support level and fell to a low of $0.20. In doing so, the altcoin dropped below its short-term moving averages, the 21- and 9-day MAs.

As of this writing, Jupiter was trading around $0.21, down 10.2% on the daily charts. Over the same window, the altcoin’s trading volume rose 20% to $50 million, suggesting increased sell-side activity.

Jupiter faces intense selling pressure amid risk-off sentiment

As the broader crypto market retraced, with the market facing increased selling activity, Jupiter was hit hard. According to DefiLlama, the protocol’s USD inflows dropped significantly, falling from $33 million to -$55 million.

Protocol USD inflows turning negative suggested that massive capital flowed out of the network, a clear sign of strong selling activity.

That’s not all; Jupiter traders panicked and hurriedly closed their positions. Jupiter’s Open Interest dropped 15% to $55.7 million, while the derivatives volume dropped 6% to $69 million.

With OI declining, it suggested that investors reduced exposure, and risk-off sentiment took over the market. The risk aversion sentiment is further validated by Futures Outflows.

According to CoinGlass data, Jupiter Futures saw $16.8 million in outflows while inflows dropped to $13.97 million. For that reason, altcoin’s Futures netflow dropped 172% to -$2.8 million, a clear sign of aggressive market panic.

In most cases when investors panic and become risk-averse, the market experiences short-term shock, which precedes price drops. But reduced leverage also brings about low volatility, which could help in stability and avoiding further downside.

With the pressure, is JUP at risk of further slip?

Jupiter is currently sitting under strong bearish pressure. In fact, the altcoin’s Bulls V Bears indicator fell to mid-August levels, dropping to -49.

A negative value for this indicator suggests that sellers significantly outweighed buyers over the said period. Often, sellers’ rising dominance brings about more weakness, which then leads to further decline.

Therefore if the selling pressure persists while sentiment remains risk-off, Jupiter could lose the $0.20 support and drop to $0.19. To invalidate this bearish outlook, JUP needs a close above its short-term moving averages at $0.23.

Final Summary

• JUP declined 10%, breaching $0.24 support to a low of $0.20. 
• Jupiter declined, driven by strong selling pressure after sentiment turned risk-off, pushing investors to reduce exposure.