Jito [JTO] Surges 18% in 24 Hours Driven by Bullish Derivatives Market

Jito [JTO] has experienced a significant surge, rising by 18% over the past 24 hours. This rally has positioned JTO ahead of other assets in the market, making it one of the top performers. The driving force behind this rally has been the derivatives market, where traders have been opening more long contracts, indicating a bullish sentiment.

Analysis reveals that the Open Interest Weighted Funding Rate, which serves as an indicator of future price movements, has been trending upward with a negative reading of -0.0054%. This suggests that increased buying activity is pushing the metric closer to positive territory. If JTO crosses into the positive zone, it could signal the start of another wave of buying activity, potentially driving the asset higher. The total value of contracts open on JTO has increased by 66.93%, largely driven by long traders, indicating sustained investor interest in purchasing the asset.

At the time of writing, JTO’s buying volume supported its rally potential, with the Taker Buy/Sell Ratio reading at 1.03. This ratio indicates that buying activity outweighs selling in the market. However, there has been a rise in spot market selling over the past four days, with the most intense activity occurring in the last two days. Sellers have offloaded $1.92 million worth of the asset, adding downward pressure to its price movement. Despite this, market reaction has remained positive, and the asset has continued its upward trend, breaking out of an ascending channel—a bullish pattern. This breakout typically acts as a catalyst for further upward movement, and in this case, JTO surged 30% to reach $2.95.

Spot investors could play a decisive role in the overall rally if they begin accumulating the asset instead of selling. Recently, Jito announced the launch of the JitoSOL/SOL isolated pool on the Drift protocol. This upgrade allows investors to stake JitoSOL—a liquid staking token—and earn JTO. At the time of writing, the pool held $2.36 million in value. If investors increase their staking activity, more JTO will be distributed. If those investors choose to hold their JTO instead of selling, it would reduce the circulating supply, strengthen current bullish sentiment, and increase demand for the asset. Analysis shows a clear path for a potential 30% gain for JTO, provided certain conditions remain in place and sellers shift their sentiment.