The price of Jito (JTO) may be up by less than a percent, but at press time, it is trading at a critical point of a trend channel pattern. On the other hand, daily trading volume was large for a token of its type, rising by about 14% and averaging about $61 million.
Basically, a breakout of the pattern to the upside may indicate a continuation of the upward trend. But respecting resistance means pulling back to at least the oblique support level.
Jito price was rejected at trend line resistance
On the charts, the price action appears to be falling into a downtrend channel after a sharp rise from $0.53 to $0.88. Looking at it optimistically, JTO appears to be correcting in a bull flag pattern. However, the driving force to move the price towards the channel support was slowly decreasing.
At the time of writing, it is rejecting upper resistance, which could mean that JTO could drop to around $0.53 with Chaikin Money Flow (CMF) support. The CMF showed funds exiting the JTO spot market on Binance with a reading of -0.07.
A break above the $0.70 area and, in particular, the trend line would signal the beginning of the next phase for JTO. This may be supported by a bullish MACD, although the bars showed a decline in momentum.
However, JTO appears to be bullish on the 2-hour chart as it has not changed the market structure yet. Only trading and holding below $0.53 would negate any potential upward continuation.
Look at OI, size and filter!
Further analysis revealed that open interest (OI) had risen to over $50 million. Simply put, OI has been $20 million short of its peak value of just over $70 million since April.
Since mid-June, total trading volume has fallen more than three-fold from around $650 million across financial and spot markets. It is now trading below the $200 million level, confirming consolidation in the trend channel pattern.
Even the volume of liquidations appears to have decreased, indicating a decline in explosive moves in either direction.
What about Gitto’s serial activity?
Well, it has come down along with the price as well. At the time of writing, total value locked (TVL) has fallen by about 20% to about $671 million. Likewise, deposited assets also decreased by the same percentage.
However, the amount of revenue generated through fees has declined more than TVL. In fact, it’s down 31% to about $2.60 million.
In conclusion, JTO stock may be trading in a correction phase from the upward movement it witnessed in the middle of this month. However, the potential continuation is uncertain, as most metrics have fallen significantly at the time of publication, with the exception of the OI.
Final summary
- JTO price has been trading around a critical level, above which a break would mean a continuation while a breakdown could lead to an extension of the correction.
- Most on-chain and derivative JTO data is declining, but traders are still interested.
