- Jupiter Exchange is now using 50% of its protocol fees to buy back and burn $JUP tokens.
- JUP has surged over 60% in the past 24 hours following the announcement.
- Technical analysis suggests a potential breakout with upside targets exceeding $2.50.
Jupiter, Solana’s based DeFi platform, is on the move after it announced a new buyback program. The exchange will now allocate 50% of its protocol fees towards purchasing and burning its native JUP tokens from the market. Following the announcement, JUP surged over 60% in the past 24 hours.
The move, coupled with the exchange’s record-breaking revenue generation, has created a bullish outlook for the token.
Jupiter generated a whopping $17 million in revenue in November 2024, setting a new milestone for the exchange. If this revenue trend continues, the buyback program could lead to the acquisition and burning of a substantial amount of $JUP tokens in the coming months.
Technical analysis suggests a bullish outlook for JUP after the 50% buyback program and the recent acquisition of Moonshot.
Jupiter’s 9-Month Consolidation Ends
JUP’s price has been consolidating within a defined range between $1.30 and $0.70 for nearly 9 months, forming a clear trading range. This extended period of consolidation suggests a potential for a further upside movement in the near future.
A successful breakout above the upper resistance level of the range could propel JUP towards the $2.50 target. While the above analysis suggest a bullish outlook, it is crucial to consider the following factors.
$JUP has been ranging between $1.30 – $0.70 for 9 months. Expecting a breakout from accumulation soon, targeting $2.5 Why, you might ask? > 50% of Jupiter exchange protocol fees will now go towards JUP buybacks > 30% total supply burned > Acquires most of @moonshot > Jupnet
Sustained high trading volume is key for a successful breakout and subsequent price appreciation. Secondly, the lower boundary of the trading range and the previous swing lows could act as potential support levels during a temporary pullback. Implementing stop-loss orders below critical support levels is essential to manage risk.
In general, the combination of strong revenue growth, and a potential price breakout has painted a bullish picture for JUP. Additionally, the aggressive buybacksbuyback program not only demonstrates Jupiter’s commitment to its token holders but also creates a deflationary force, potentially driving up the price of JUP in the long run.
With a robust buyback program in place and a bullish technical outlook, JUP is a token worth watching.
