In the cryptocurrency market, Solana's tokens Jupiter (JUP) and Raydium (RAY) faced sharp declines but are now exhibiting signs of recovery.
Jupiter (JUP) Market Analysis
The weekly JUP chart reveals that the price has been trading within a year-long descending triangle pattern. The recent downtrend, which began in early December after rejection from the upper trendline, has driven JUP deeper into correction territory. This week's decline pushed JUP to test its critical support zone at $0.67. However, it held firmly at this level and has bounced back, currently trading around $0.78. If the bullish momentum continues, JUP will first face resistance at the 25-week Simple Moving Average (SMA). A breakout above this level would confirm an upside move, potentially driving the price to retest the descending triangle's upper resistance trendline near $1.10 to $1.20.
Raydium (RAY) Market Analysis
Raydium (RAY) is consolidating within an ascending broadening wedge pattern—a structure generally considered bearish in technical analysis. The recent downtrend, which began on January 23 after rejection from $8.67, pushed RAY towards its lower trendline support at $4.31. However, buyers stepped in at this level, preventing a breakdown, and RAY has now rebounded to trade around $4.66. If the bullish momentum sustains, the next key resistance to watch is the 100-day SMA. A breakout above this moving average could confirm an upward move, possibly driving RAY to retest the upper resistance trendline of the wedge.
Final Remarks
Both Jupiter (JUP) and Raydium (RAY) have defended crucial support zones and are showing early signs of recovery. While JUP remains within a descending triangle, a breakout above key resistance levels could push it towards a major bullish move. Similarly, RAY's price action within an ascending broadening wedge suggests cautious optimism, with a breakout above resistance potentially leading to a strong rally.
Despite signs of recovery, traders should remain cautious and watch for confirmation signals before making investment decisions.
