JUP Token Dips After $100M Buyback—What’s Capping Its Potential?

JUP Token Faces Challenges Despite Strong Buyback Push: Here’s What You Need to Know

JUP Token– Jupiter’s ambitious $100 million annual buyback program, introduced in February, has not yielded the expected results for JUP token traders and holders. Despite the program acquiring $19 million worth of JUP, the token has experienced a 15% decline from its buyback price of $0.50, according to a recent report by Pine Analytics.

Factors Behind JUP’s Price Struggles

According to Pine Analytics, a few key factors may have capped JUP’s potential price growth. One notable factor is the overall contraction in the market during Q1, with a significant drop in on-chain activity on Solana’s decentralized exchange (DEX). This slowdown may have affected JUP’s upward momentum.

Token Dilution and Unlocking Events

Token dilution is another reason for JUP’s sluggish price performance. In January 2025, 700 million JUP tokens (representing 7% of the supply) were unlocked for the Jupuary airdrop, adding more supply to the market. As of 2025, around 27% of the total token supply has been unlocked, with over 5 billion JUP still locked. These tokens could exert downward pressure on the price when they are eventually released.

Potential for Short-Term Reversal

Despite the overall price decline, a slight accumulation of JUP tokens was observed in the first week of May. According to CoinGlass’s Exchange Netflows, more than $4 million worth of JUP tokens were moved off exchanges, signaling potential accumulation. Additionally, whales appear to have trimmed their positions, aligning with the drop from $0.50 to $0.41. The $0.41 mark may act as a potential short-term support level, possibly paving the way for a bullish reversal.

However, for a price recovery to occur, the Relative Strength Index (RSI) would need to rise above 50 again, indicating renewed buying pressure.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.