Jupiter (JUP) is poised for a breakout as TVL hits a record high and plans to allocate 150 million USDC.

As of Tuesday afternoon, the price of Jupiter (JUP) has risen more than 7%, extending a streak of four consecutive gaining sessions. This breakout was ignited after the project announced a plan to allocate 150 million USDC to a lending program for Jupiter (JLP) liquidity providers, aimed at boosting activity in the decentralized finance (DeFi) sector.

At the same time, the total value of assets locked (TVL) on the Jupiter protocol also recorded a new historical peak, approaching the 3 billion USD mark. In the context of increasing capital inflows, technical signals are leaning heavily towards the bulls, reinforcing expectations for a promising next growth phase.

The 150 Million USDC Plan to Promote the DeFi Lending Ecosystem

Jupiter has just announced a plan to allocate 150 million USDC to loans under the Jupiter Liquidity Provider program (JLP), in order to enhance liquidity for its DeFi lending platform through profitable JLP tokens. This protocol also emphasizes a notable safety mechanism: in the event of liquidation, JLP tokens will be burned to recover locked assets, instead of being sold off on the market – thereby minimizing sudden sell-off pressure.

According to data from DeFiLlama, the Total Value Locked (TVL) on Jupiter has reached 2.97 billion USD, a significant increase from 2.81 billion USD on Monday. The TVL index – which measures the total cryptocurrency assets locked in a protocol – is often seen as a measure of trust and usage of the platform. The increase in TVL indicates that more and more users are pouring capital into the Jupiter ecosystem.

JUP TVL Chart | Source: DeFiLlama## JUP's open contract exceeds 200 million USD

Data from Coinglass shows that the open contract (OI) of JUP has surged by 36% in the past 24 hours, reaching 202.45 million USD. This sudden increase often reflects new capital flowing into the derivatives market, while also indicating a growing optimism and confidence from investors.

The funding rate also recorded a significant increase, rising to 0.0110%, compared to 0.0055% on Monday. This trend indicates that the flow of funds is leaning towards buyers. In the funding mechanism, when buying pressure increases causing the futures contract price to be higher than the spot price, the holder of the long position (Long) must pay this fee – conversely, if selling pressure dominates.

JUP derivative data | Source: Coinglass## Jupiter aims for the milestone of $0.74

JUP has just made a spectacular breakout, surpassing the 200-day exponential moving average (EMA) at the level of $0.5836, while also conquering the important resistance level of $0.6339 – a level that was last tested earlier this week. A series of 4 consecutive green candles has helped the price of JUP soar over 40% in July.

If the price can close firmly above the threshold of $0.6339, the upward trend is likely to continue to expand, with the next target being the mark of $0.7459 – the bottom established since December 20.

Daily JUP/USDT Chart | Source: TradingViewThe MACD indicator and signal line have not yet shown a crossover signal; however, the return of the green histograms above the 0 line indicates that the upward momentum is clearly being reinforced.

The Relative Strength Index (RSI) is also at a staggering high – 85 points on the daily chart – indicating that the market is in an overbought state, reflecting the strong demand that is dominating.

However, if JUP cannot maintain a closing level above $0.6339, a bearish reversal scenario may return. In that case, the 200-day EMA at $0.5836 will be the first support level, followed by the 100-day EMA at $0.5031.

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