• Jupiter Exchange has prepared a proposal that aims to burn 30% of the total supply.
  • Jupiter price retests a key support area extending from $0.637 to $0.708.
  • On-chain data shows that JUP Total Value Locked (TVL) is increasing.
  • A daily candlestick close below $0.637 would invalidate the bullish thesis.

Jupiter Exchange has formulated a proposal to burn 30% (3 billion tokens valued at $2.3 billion) of the total JUP supply, focusing on deducting this reduction from team allocations while ensuring no impact on annual JUP airdrops to the community. This strategic move is expected to decrease the supply of JUP, potentially signaling a bullish trend for Jupiter's price.

Jupiter price shows a bullish divergence

Jupiter price retest is a key support area that extended from $0.637 to $0.708 on Tuesday and bounced 5% to its current trading price of $0.778.

Additionally, the lower low formed on June 18 does not reflect the Relative Strength Index’s (RSI) higher highs for the same period on the 4-hour chart below. This development is termed a bullish divergence and often leads to the reversal of the trend or a short-term rally.

If the $0.637 to $0.708 level holds, JUP could rally 21% from its current trading price of $0.778 to tag its 50% price retracement level at $0.945.

Moreover, if Jupiter's price closes above $0.945, it could extend an additional 25% rally to retest its high of $1.018 on June 5.

JUP/USDT 4-hour chart

JUP/USDT 4-hour chart

Additionally, crypto intelligence tracker DefiLlama data shows that JUP’s Total Value Locked (TVL) increased from $383.14 million on June 14 to $401.3 million on June 20.

This 4.7% increase in TVL indicates growing activity and interest within the JUP ecosystem. It suggests that more users are depositing or utilizing assets within JUP-based protocols, adding further credence to the bullish outlook.

JUP TVL chart

JUP TVL chart

Even though news, technical analysis and on-chain metrics point to a bullish outlook. If Jupiter's price produces a daily candlestick close below the $0.637 support area, the move will invalidate the bullish thesis by making a lower low on the daily time frame. This development could see JUP's price crash by 27% to retest its daily low of $0.470 from March 5.


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