Recent Price Plunge of Jupiter (JUP) and the Growing Interest in Solaxy (SOLX)
The price of Jupiter (JUP) has recently plummeted, drawing significant attention from investors. Meanwhile, Solaxy (SOLX), a layer-2 project based on the Solana network, is gaining considerable interest among investors. In this article, we will analyze the reasons behind JUP's decline and the growth potential of Solaxy.
Analysis of Jupiter's Decline
JUP has fallen over 8% in the past 24 hours and is currently trading at $0.7769. As a result, JUP's weekly performance has also turned negative.
According to the cryptocurrency data platform GeckoTerminal, JUP has been forming a consistent downward channel in recent days. This pattern is characterized by the price repetitively creating lower lows and lower highs, indicating a gradual decline.
If this downtrend continues, JUP may drop below the support level at $0.7913, potentially falling as low as $0.6885.
Conversely, if JUP breaks through the upper resistance of the downward channel, it could invalidate the downtrend. In this scenario, JUP would attempt to turn the resistance level at $0.8770 into support, with the possibility of rising to $0.9499 thereafter.
Technical Indicator Analysis: Possibility of Further Decline
Technical analysis suggests that JUP’s current Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators indicate additional downside potential.
- RSI Indicator: Over the past 48 hours, the RSI value has plummeted from the 70s to 30, signaling a weakening buying momentum. Although there seems to be an attempt to maintain horizontal movement, the risk of further declines remains high.
- MACD Indicator: The MACD line is situated below the signal line, which suggests a high likelihood of the current downtrend continuing.
Solaxy: The First Layer-2 Solution for Solana
Solaxy is the first layer-2 project that has emerged to address the scalability issues of the Solana network. Recently, due to a surge in Solana-based meme coins, the Solana blockchain has experienced a dramatic increase in transaction throughput, leading to congestion and high fee problems.
To tackle these issues, Solaxy employs rollup technology, processing certain transactions on the Solana mainnet before bundling them for validation. This approach is similar to the scaling solutions found in Ethereum's Arbitrum and Optimism.
Solaxy's Unique Value Proposition: Bridging Solana and Ethereum
Beyond being a simple scaling solution, Solaxy aims to serve as a bridge connecting Solana and Ethereum. This will facilitate the creation of a robust Web3 ecosystem that combines the strengths of both blockchains.
SOLX is likely to become the primary payment layer between these two networks, contributing to improved transaction speeds and reduced fees in future transactions between Solana and Ethereum.
High Investor Expectations
Solaxy has already secured over $21.9 million in funding, gaining strong investor confidence. Currently, it is in the presale at a price of $0.001638, with options available for purchase using cryptocurrency or credit cards.
Additionally, during its ICO phase, Solaxy offers staking rewards of 185% APY, providing significant profit opportunities to early investors.
Conclusion
Currently, Jupiter faces a high risk of further decline based on technical indicators, necessitating a cautious investment strategy in the short term. In contrast, Solaxy is attracting attention as an innovative layer-2 solution that resolves the scalability issues of Solana while connecting it to Ethereum.
Given its technological strengths and significant investor interest, Solaxy is poised for potential substantial growth. Therefore, investors looking to avoid the volatility of JUP should consider keeping an eye on emerging projects like SOLX.
- This text does not constitute investment advice or financial recommendations.Cryptocurrency investment involves significant risks, and the responsibility for investment decisions rests solely with the investor.
