Jito is changing hands around the $0.66 mark and has witnessed growth by 7.78 percent in the past 24 hours and 20.14 percent in the last 30 days. However, the token is still trading lower than the previous week by 9.21 percent. It suggests that we’re in for a lot of turbulence ahead. As it is evident, Jito rebounded from a major support level, but the technical indicators don’t clearly confirm an upcoming trend reversal.
The importance of this rally lies in the level it bounced off of. Jito is popping off the same $0.60 support zone that has provided buy-side liquidity to holders since the beginning of May. This is the most significant support zone, as buyers have already tested it multiple times.
The bulls showed up exactly at the key level
Jito’s price broke the $0.60 level in May, having traded in the range of $0.28 and $0.35 for months prior. It has acted as support since. At the beginning of July, Jito reached almost $0.89 but had decreased to its current price over the next week.
Jito’s recent dump bottomed out at $0.6079, very nearly testing the identified zone, before bouncing and trading close to $0.66. That action suggests that the level is supported by the bulls in the short term.
Nonetheless, a rebound from support can’t simply be interpreted as the beginning of an uptrend. We usually see a move away from powerful levels simply as traders anticipating that this is where they will be able to buy. The ensuing sessions will show if the current move is simply a support rally or is the start of a big recovery.
The move is not yet confirmed by the momentum indicators
So the price has bounced but not by much. On the charts the MACD histogram is still under the zero line with a value of -0.024. This implies the bulk of buying power has still not come back on line. RSI14 is also under the 40 line, currently at 42.82, so selling pressure has reduced but selling action is not yet fully reversed into a buying one.
Here lies the primary conflict within Jito’s chart. While price is clearly proving some strength bouncing from support, the indicators are still reflecting past weakness. One green candle can either be shorts covering or a moment of short-term buying interest. The best recoveries must see momentum follow through the price action.
The direction is dependent on the next levels
The recent price action of this digital asset moving from $0.52 to $0.88 sets up important Fibonacci levels. The 61.8 percent retracement is sitting at $0.6613, and this matches with the current trading price of Jito. This movement makes the current price a key decision area. For the pivot level, it stands close to the support zone that the bulls defended at $0.602. To keep the recovery scenario intact, holding above this key level is crucial.
The next key hurdle would then be around $0.70, where it’s at the 50 percent Fibonacci retracement level. A price action breaking out there would demonstrate buying power and not just a desperate effort to defend the support line. On the other side, if JTO slides under $0.60, it would put this scenario at risk and the bounce may be at risk.
Traders still remain fragmented
Traders who bought near the July high of $0.89 are still facing losses even after today’s recovery. Many of these holders may look to sell if the price moves higher to reduce their exposure.
Meanwhile, buyers who entered near the $0.60 support zone are currently in a better position and may continue defending that level. This is what triggers a battle between buyers protecting support and sellers waiting to exit near higher prices. Until one side takes control, Jito may continue trading in a wide range.
