The cryptocurrency market is currently demonstrating strong performance, with Ethereum (ETH) experiencing a significant price increase of over 6 percent today. This surge in ETH's value has allowed several major altcoins, including Jupiter (JUP), to show signs of strength.
Jupiter (JUP) has seen a 7% jump in its price. More importantly, its technical setup is indicating a possible bullish reversal. The current chart patterns suggest a key formation that could pave the way for an upside breakout in the upcoming trading sessions.
Descending Broadening Wedge Pattern in Play
On the 4-hour chart, JUP has been trading within a descending broadening wedge. This particular chart structure is recognized as a bullish reversal pattern. It commonly forms during corrective phases in the market and typically signals an increase in volatility, which often precedes an upward breakout.
During a recent pullback, JUP retested the lower boundary of this wedge, a level near $0.3214. This zone has consistently provided strong support for the cryptocurrency. Buyers responded confidently at this support level, initiating a rebound that pushed the price towards $0.3622. This movement has brought JUP very close to the wedge's upper resistance trendline.
The price action is becoming increasingly consolidated near this upper boundary, reflecting growing momentum and building pressure for a potential breakout.
What's Next for JUP?
If buyers successfully drive JUP's price above the upper trendline of the wedge and reclaim the 200 Moving Average, which is currently positioned around $0.3783, the chart pattern would confirm a bullish breakout. Following such a breakout, the next significant technical target is projected to be around $0.50. This represents a potential upside of approximately 37 percent from its current trading levels.
Conversely, if JUP encounters rejection at the current resistance zone, it might continue to trade sideways within the confines of the wedge. In such a scenario, the region around $0.3349 would become the key short-term support level to monitor closely.
For the time being, the overall technical structure for JUP appears constructive. With the descending broadening wedge pattern remaining intact and buyers actively defending critical support levels, JUP is positioning itself for a significant breakout attempt. This prospect is further enhanced by the possibility of strengthening broader market sentiment throughout November.