Jupiter Crypto Soars 13% Amid Reduced Selling Pressure, Boosts Solana
Jupiter and Solana: Price Recovery in Focus
The price of the cryptocurrency Jupiter [JUP] rose by 13% to $0.59 on February 7th. However, the price soon fell back to $0.53. This was the first time since February 3rd – three days after the official market entry – that JUP reached $0.59.
Why did the price of Jupiter rise?
According to Arkham Intelligence, the Jupiter team removed liquidity from the pool, which led to a reduction in selling pressure. A liquidity pool is a collection of cryptocurrencies locked in a smart contract. This accelerates orders and transactions on a decentralized exchange (DEX). Removing liquidity from the pool helps to minimize the selling pressure on the cryptocurrency, which was the case with JUP.
Solana influences Jupiter’s price increase
Another cause for the price increase of JUP was the cryptocurrency Solana [SOL]. SOL had been trading for a while under $100, but rose to $102 at the same time as JUP. Solana and Jupiter have some correlation, as Jupiter is an exchange built on the Solana blockchain.
Increased Trading Volume
The trading volume of JUP rose in the early morning hours of February 7th to around $265.95 million. A few hours later, the volume jumped to $465.12 million, suggesting a lot of buying and selling activity was taking place with JUP.
Social Volume: An Indicator of Interest
The social volume, i.e., the rate at which participants search for an asset, also increased during the price rise. When JUP reached $0.59, the social volume surged strongly to 16.95. An increase in social volume suggests that many eyes are tracking the token and discussing it. A decrease in social volume, on the other hand, suggests that interest is waning.
Outlook
After the initial increase in social volume, market participants seem to have turned away from JUP and directed their attention to other cryptocurrencies. This could provide a buying opportunity for participants in the long term.
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Sources: Arkham Intelligence, CoinMarketCap, Santiment
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