- JUP skyrocketed 8.82% after unveiling a buyback plan, locking tokens for three years and shrinking circulating supply. 🚀
- With a TVL of $2.7 billion and protocol fees on the rise, Jupiter’s buyback might just be the stability it needs. Or not. 🤷♂️
Jupiter [JUP] has rolled out a buyback scheme so strategic it could make Sun Tzu proud. Half of all protocol fees will now be funneled into purchasing JUP, locking it away for three years like a miser hoarding gold. 🏦
This grand plan aims to slash circulating supply, potentially sending the token’s value soaring. Buybacks kick off on February 17th, and the market is watching with bated breath. Will it be a masterstroke or a master flop? 🎭
Market Reaction: A Tale of Two Averages
Post-announcement, JUP climbed 8.82% to trade around $0.9255. The price chart showed JUP flirting with key resistance levels, with the 50-day Moving Average (MA) at $0.8951 and the 200-day MA at $0.9203. 📈
A sustained breakout above the 200-day MA could signal bullish momentum, setting the stage for a potential rally. Or, you know, it could just be a tease. 🐂
The Relative Strength Index (RSI) was at 52.07, suggesting neutral momentum. If buying pressure ramps up, the RSI could push toward overbought levels, further fueling the bullish fire. 🔥
Trading Volume and On-Chain Shenanigans
JUP’s trading volume spiked post-buyback announcement, reflecting heightened investor interest. DeFiLlama data showed a sharp increase in protocol fees, directly impacting buyback allocations. 📊
Over the past few weeks, protocol fees have surged dramatically, peaking at over $600K per day, compared to significantly lower levels in the preceding months. This rapid increase suggests growing user activity and revenue generation, bolstering the buyback mechanism’s sustainability. 💪
Additionally, JUP’s Total Value Locked [TVL] was around $2.7 billion as of this writing, indicating strong market confidence in the protocol. A higher TVL reflects greater liquidity and ecosystem growth, which could amplify the buyback strategy’s positive impact over time. 🌱
Potential Scenarios: The Good, The Bad, and The Ugly
If JUP breaks past the $1.00 psychological barrier, it could test further resistance levels around $1.10 and $1.20. However, failure to sustain momentum may lead to a retest of the $0.85 support zone, where buyers previously stepped in. 🎢
JUP could experience gradual upward pressure as the buyback mechanism reduces available supply. Still, market sentiment and broader crypto trends will be crucial in determining long-term price action. Investors will keenly observe how the buybacks influence liquidity and overall demand in the coming weeks. 🧐
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2025-02-14 17:15