fxstreet.com
- Jito price action over the past four months has set up a cup-and-handle pattern.
- This setup forecasts a 55% rise to $6.05, and the recent move confirmed the breakout.
- A breakdown of the $3.86 support level would invalidate $JTO’s bullish outlook.
Jito ($JTO) price has shown resilience despite Bitcoin’s (BTC) recent drawdown. This development shows buyers are flocking toward $JTO and that the altcoin is ready to fly.
Also read: Jito price could hit $6 as $JTO coils up inside this bullish pattern
Jito price eyes a lift-off
Jito price action between December 9 and March 31 created a bullish pattern known as cup-and-handle. This technical setup contains a rounded bottom known as the cup and is often followed by a small retracement or consolidation termed the handle. $JTO formed the cup between December 9 and March 16 and the consolidation that ensued for the following two weeks created the handle.
A trend line drawn connecting the cup and the handle’s peaks forms a resistance level and is key for tracking a breakout. For $JTO, this horizontal level at $3.86 was breached on March 31. Due to Bitcoin’s recent correction, Jito price retested the neckline as a support floor, confirming the breakout.
From a technical perspective, Jito price is set to rally higher.
The target for the cup-and-handle pattern is obtained by measuring the 55% distance between the cup’s right peak and its bottom. Adding this distance to the breakout point or neckline reveals a target of $6.05.
The Relative Strength Index (RSI) is recovering from under the overbought zone. While this would be alarming in a normal scenario, in bull runs, RSI tends to stay overbought for prolonged time.
$JTO/$USDT 1-day chart" src="https://cnews24.ru/uploads/0e3/0e386a859a21a5ff0e6c4474562d59576c967a1c.png" size="3288x1850">
$JTO/$USDT 1-day chart
While Jito price shows clear bullish signs, the outlook could change quickly if Bitcoin price continues its descent. In such a case, if $JTO produces a decisive daily close below $3.86 it would invalidate the cup-and-handle forecasts. This development could see $JTO crash 26% to $2.85.
Also read: US Dollar strength could be one of the reasons why Bitcoin could crash more