JTO’s rally was driven by derivatives traders. But there’s more.
- JTO’s rally has been driven by derivatives traders in the market, as they continue opening more long contracts. Sellers still maintain their stance; however, analysis shows a clear path for a potential 30% gain for JTO.
Jito [JTO] recorded the highest gains in the market after an 18% rise over the past 24 hours, placing it ahead of other assets.
AMBCrypto analysis, at the time of writing, revealed that JTO still holds rally potential, provided certain conditions remain in place and sellers shift their sentiment.
Futures traders drive JTO’s movement
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Analysis showed that JTO’s rally has predominantly been driven by traders in the derivatives market, as they continue opening long positions.
The Open Interest Weighted Funding Rate served as an indicator of where the asset is likely to trade next.
Source: CoinGlass
At press time, the Open Interest Weighted Funding Rate held a negative reading of -0.0054% while trending upward.
This suggests that increased buying activity is currently pushing the metric closer to positive territory.
If JTO crosses into the positive zone, it would indicate the start of another wave of buying activity, potentially driving the asset higher.
Analysis also showed that the total value of contracts open on JTO sat at $77.98 million—a 66.93% increase—driven largely by long traders.
Source: CoinGlass
A continued rise would imply sustained investor interest in purchasing the asset, which could lead to a more significant rally on the chart.
At the time of writing, JTO’s buying volume supported its rally potential, with the Taker Buy/Sell Ratio reading at 1.03.
When the Taker Buy/Sell Ratio exceeds 1.0, it indicates that buying activity outweighs selling in the market.
Will selling pressure hold the rally back?
At press time, there has been a rise in spot market selling, a trend ongoing for the past four days.
The last two days have seen the most intense activity, as sellers offloaded $1.92 million worth of the asset, adding downward pressure to its price movement.
Source: CoinGlass
Despite this, market reaction has remained positive, and the asset has continued its upward trend. In fact, JTO recently broke out of an ascending channel—a bullish pattern.
This breakout typically acts as a catalyst for further upward movement. In this case, JTO surged 30% to reach $2.95.
Source: TradingView
Spot investors could play a decisive role in the overall rally if they begin accumulating the asset instead of selling.
Jito’s development activity boosts speculation
Recently, Jito announced the launch of the JitoSOL/SOL isolated pool on the Drift protocol. This upgrade allows investors to stake JitoSOL—a liquid staking token—and earn JTO.
At the time of writing, the pool held $2.36 million in value. If investors increase their staking activity, more JTO will be distributed.
If those investors choose to hold their JTO instead of selling, it would reduce the circulating supply, strengthen current bullish sentiment, and increase demand for the asset.
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