Will Jito’s second chance trigger a rally to $6 for JTO bulls?
- Jito’s cup and handle setup forecasts a massive breakout rally.
- JTO could trigger a 55% move to $6.00 if the $3.86 support level holds.
- A decisive breakdown of the $3.86 barrier will invalidate the bullish thesis.
Jito (JTO) price catalyzed a breakout rally on March 31 as it completed a bullish consolidation pattern. Since then, JTO has triggered an explosive move but failed to sustain it due to the market conditions. Now, the Solana-based token ponders on its second attempt at an uptrend.
Read more: Jito price confirms 55% breakout rally after recent JTO dip
Jito price at a make-or-break point
Jito's price action between December 9, 2023, and March 16, 2024, set up two rounded bottom patterns. The first structure, which is roughly 55% deep, is the cup, and the second is a handle—hence the namesake. The swing highs of these structures can be connected using a trend line to form a horizontal resistance level.
From a technical standpoint, a breakout above this resistance level at $3.86 confirms a breakout from the cup and handle pattern. This technical formation forecasts a 55% rally obtained by measuring the depth of the cup and adding it to the breakout point at $3.86, which reveals a target of $6.
After its initial thrust above the $3.86 hurdle, Jito price ascended 38% and set up a local top at $5.32. However, due to Bitcoin’s retracement, altcoins suffered a pullback. As a result, Jito price retested the $3.86 support level and currently exchanges hands at $4.08, with the anticipation of a higher move.
The Relative Strength Index and Awesome Oscillator are both close to their respective mean levels of 50 and 0, respectively, which suggests that a reset could lead to a bounce. Hence, JTO is at a good point to trigger a bounce. All it needs is the go sign from the big crypto or renewed enthusiasm.
JTO/USDT 1-day chart
On the other hand, if Jito price breaches the $3.86 support level on the daily chart and flips it into a resistance level, it would invalidate the bullish thesis. This move would produce a lower low and potentially kickstart a 27% correction to $2.85.
Also read: Week Ahead: Crypto market outlook could set to change after stale weekend
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
