Assessing the odds of Jupiter [JUP] climbing above $2 thanks to THIS pattern

• Jupiter could be forming one other bullish flag sample on the charts quickly
• Token might face a liquidation barrier close to the $1.2-level

Jupiter [JUP] has been consolidating for a couple of days now, with its value motion on the charts being pretty marginal. Nevertheless, there could also be extra to the story right here because the altcoin quietly climbed above one more bullish sample.

Will this be the set off that’ll push the token to $2 within the coming days? 

Jupiter’s secret plan

Due to the crypto’s current bout of consolidation, its drop in volatility had a detrimental impression on its social metrics. The truth is, the token’s weighted sentiment declined sharply – An indication of accelerating bearish sentiment throughout the market.

Supply: Santiment

Nevertheless, buyers shouldn’t be impatient, particularly since Jupiter may need a trick up its sleeve too. World Of Charts, a well-liked crypto analyst, shared a tweet highlighting a vital replace. In accordance with the identical, JUP silently broke above one other sample. This bullish falling wedge sample emerged within the first week of November.

Since then, Jupiter’s value has consolidated inside it, solely to breakout on 29 November. If the evaluation is to be believed, this may enable the token to kind one other sample, which has the potential to push JUP to $2 within the coming weeks. 

Supply: X

What’s subsequent for JUP?

To be exact, JUP may quickly kind a bullish flag sample. If that occurs, and JUP breaks out, it would hit $2. Subsequently, buyers may see JUP’s value drop after it first registers a couple of tall candlesticks. To see whether or not that’s doable, AMBCrypto assessed JUP’s on-chain information.

On the time of writing, there have been extra brief positions out there than lengthy positions, with the identical evidenced by the sharp decline in Jupiter’s lengthy/brief ratio. This may be attributed to the rising bearish sentiment out there due to JUP’s sluggish value motion. 

Supply: Glassnode

Nonetheless, the token’s Open Curiosity (OI) has additionally moved sideways these days. This urged that buyers’ curiosity within the token hasn’t been rising a lot. And, this might set off a development reversal within the coming days.

On prime of that, market indicators additionally supported the opportunity of a bullish development reversal.

As an illustration – The Relative Power Index (RSI) has been transferring north, indicating an increase in shopping for stress. Jupiter’s value gave the impression to be testing the help at its 20-day SMA too. Within the occasion of a profitable check, supported by excessive shopping for stress, it received’t be formidable to count on a contemporary bull rally, earlier than it kinds a bullish flag. 

Supply: TradingView

Real looking or not, right here’s JUP’s market cap in SOL phrases  

Nevertheless, the token will face an important barrier going ahead.

Jupiter’s liquidation heatmap revealed that the token’s liquidations will rise sharply close to $1.2. Usually, excessive liquidation ends in value corrections. Subsequently, it should soar above that stage to eye $2 within the close to future.

Supply: Coinglass