Jupiter's JUP Token Surges 8.82% on Strategic Buyback News
1min read Jupiter, a decentralized finance (DeFi) protocol, has announced a strategic buyback initiative aimed at reducing the circulating supply of its native token, JUP. The plan allocates 50% of all protocol fees to purchasing and locking JUP for three years, with buybacks set to begin on February 17th. This move has sparked investor interest and market reaction.
Following the announcement, JUP showed a notable uptick, climbing 8.82% to trade around $0.9255 at press time. The token attempted to reclaim 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 indicate bullish momentum, setting the stage for a potential rally. The Relative Strength Index (RSI) was at 52.07, suggesting neutral momentum, but could push toward overbought levels if buying pressure increases.
JUP's trading volume spiked following the buyback announcement, reflecting heightened investor interest. Data from DeFiLlama showed a sharp increase in protocol fees, directly impacting buyback allocations. Over the past few weeks, protocol fees have surged dramatically, reaching peaks of over $600K per day, compared to significantly lower levels in the preceding months. This rapid increase suggests growing user activity and revenue generation, strengthening the sustainability of the buyback mechanism. Additionally, JUP's Total Value Locked (TVL) was around $2.7 billion as of this writing, indicating strong market confidence in the protocol and greater liquidity and ecosystem growth.
If JUP successfully 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. JUP could experience gradual upward pressure as the buyback mechanism reduces available supply. Market sentiment and broader crypto trends will be crucial in determining long-term price action, and investors will keenly observe how the buybacks influence liquidity and overall demand in the coming weeks.
