Jupiter price pulls back amid encouraging DEX volume metrics

While the trading volume in Solana’s ecosystem has increased, the Jupiter token has declined for two days in a row.

Jupiter (JUP) fell to $0.08 on September 23 from last week’s peak of $0.89, taking its market cap above $1.098 billion.

Data from DeFi Llama shows that decentralized exchange Solana’s (SOL) trading volume has increased by 18% over the past seven days, bringing the total to over $5.27 billion. It has outpaced Ethereum, which saw its trading volume drop by 29% to $5.1 billion.

Jupiter’s transactions have been robust, with data from Solscan showing it processed $587 million worth of tokens on September 23 and had a 37% market share. It has over 10,400 active wallets.

Other leading Solana DEX networks like Raydium, Orca, and Meteora also saw higher volumes, with meme coins like Popcat (POP) and Dogwifhat (WIF) rallying.

But there have been signs recently that Jupiter’s volume momentum is flagging. It has fallen to $580 million after peaking at $1.14 billion on September 19.

Jupiter change volume | Source: Solscan

On the other hand, Jupiter’s total assets have increased by more than 5 percent in the last 30 days, reaching over $1.17 billion, making it the third largest player in the ecosystem.

Jupiter’s token has been withdrawn a week after developers acquired SolanaFM, a leading blockchain explorer. The acquisition is expected to help Jupiter grow its infrastructure network ecosystem.

A key challenge for Jupiter’s token is its concentrated ownership structure. According to SolanaFM, the top ten addresses on the network hold almost 92% of all tokens in circulation. A highly concentrated token is often at risk if these owners decide to liquidate their positions.

Jupiter finds strong support Jupiter token chart | Source: TradingView

On the daily chart, the Jupiter token found strong support at $0.6577, a level it struggled to break through in July, August, and September. This suggests it is forming a triple bottom pattern with a neckline at $1.2200.

Jupiter also managed to stay 78.6% above the Fibonacci Retracement level and is trading above the 50-day and 25-day moving averages.

Therefore, Jupiter is likely to continue its uptrend as long as it stays above the two moving averages and last week’s high of $0.8932.