Analyzing JUP After DAO Suspension: Can the Token Still Be Bullish?

Jupiter, the leading decentralized exchange (DEX) aggregator on Solana, has found itself in a challenging position.

Once hailed as a cornerstone of Solana DeFi innovation, the platform’s native token, JUP, has suffered a brutal downturn, dropping over 82% from its all-time high of $2.04.

Yet, despite governance turmoil and market skepticism, some traders argue that the token might be setting the stage for a major comeback.

So, in light of Jupiter suspending DAO voting and ongoing community distrust, is there still a bullish case for JUP?

The DAO Breakdown: Governance on Pause

On June 19, Kash Dhanda, the “cat-herder” of the Jupiter DAO, announced that all governance voting would be paused until 2026. The reason? A “perpetual FUD cycle” that, according to Dhanda, had derailed the DAO’s ability to function productively.

“Instead of the DAO, holders, and team working in cohesion… we are stuck in a negative feedback loop,” he stated.

The controversy stems from the team’s large token allocation, 20% of the 10 billion JUP supply, which allegedly allowed them to disproportionately influence votes.

Critics, like pseudonymous DAO participant BuddyChaddi, claimed that team members casting over 4.5% of all votes undermined decentralization.

In response, Jupiter co-founders Meow and Siong Ong assured the community that they do not vote using their tokens, and a third co-founder has ceased vesting to limit conflict of interest.

The suspension of DAO voting, along with a freeze on new working group funding and a hold on the Community Reserve, is intended to give the team and stakeholders breathing room to rebuild trust and refocus on growth.

Read Also: Jupiter Makes Fiat On-Ramps to Solana Seamless

The Market Fallout: JUP's Brutal Collapse

Source: TradingView

JUP’s market performance has mirrored the governance drama.

Since peaking at $2.04, the token has plunged to just $0.3629—a devastating 82.73% crash. In the past month alone, JUP has lost over 33% of its value, leaving many investors disillusioned.

“Nobody expected Solana’s most recognizable token to become nearly worthless,” said one trader who exited at $0.70.

The main criticisms are consistent: a lack of clear token utility, massive unlocks, and an overemphasis on governance infighting rather than tangible value creation.

Still, the current price hovers above a critical support level at $0.3371. Some traders view this as a potential "death line"—a level that, if held, could signal a meaningful reversal.

A Glimmer of Hope: Bullish Catalysts?

Source: DefilLama

Despite the collapse in price and confidence, Jupiter’s fundamental metrics remain impressive:

1. $1 trillion in total trading volume, the highest of any Solana-based DEX.

2. Over 1.7 billion swap transactions processed.

3. Nearly 49 million unique traders.

4. Daily transaction fees exceeding $3.8 million, outperforming even Ethereum’s Uniswap.

On top of this, the platform launched Jup Mobile, a comprehensive DeFi wallet app designed to onboard new users and expand the “Jupiverse.”

These developments suggest the product and platform remain strong, even as token sentiment weakens. Jupiter has also committed to continue staking rewards (50 million JUP per quarter) through the end of the year, albeit with no new emissions, which could help stabilize sell pressure.

Source: Jupiter Exchange on X

Read Also: 8 Solana Lending Platforms You Can Explore

Technical Outlook: Is a Rebound Imminent?

Source: TradingView

From a charting perspective, JUP may be entering oversold territory, with the Relative Strength Index (RSI) around 33.54. The token recently tested support at $0.3371, with a mild bounce back to $0.3594, hinting at renewed accumulation.

If bulls manage to defend this level and push above $0.3889, a move toward $0.4981 could follow. Some traders, like the well-known Bitcoin Consensus, believe a breakout from a double-bottom pattern could propel JUP back toward $0.96—a potential 174% upside.

However, failure to hold the $0.3371 support would invalidate this recovery setup and likely send JUP spiraling to new lows.

Source: TradingView

Conclusion: Dead Project or Discounted Opportunity?

The current state of Jupiter presents a paradox.

On one hand, the DAO suspension, price crash, and trust issues paint a picture of a project in disarray. On the other hand, the platform’s growth, record-breaking metrics, and new product rollouts showcase long-term potential.

The bearish sentiment might be justified in the short term, but structurally, JUP is not a dead token. Rather, it's in a transitional phase, from DAO-driven decentralization to a more centralized, execution-focused model.

If Jupiter can deliver on its product roadmap while restoring investor confidence, the current price levels may be remembered as a deep discount, not a death sentence.

Stay ahead of the market and navigate every shift in the crypto world with confidence. For the latest updates, expert insights, and in-depth token analyses like this one, make sure to follow the Bitrue Blog.

Whether you're holding, trading, or just exploring, Bitrue keeps you connected to the pulse of crypto.

FAQ

Q1: Why did Jupiter suspend its DAO voting system?
A: Jupiter paused DAO voting until 2026 due to rising community distrust, accusations of team overreach in voting influence, and an unproductive governance loop that hindered growth.

Q2: How much has JUP's price dropped from its all-time high?
A: JUP has fallen over 82% from its peak of $2.04, currently trading around $0.36 amid concerns over utility and token emissions.

Q3: Are there any bullish signs for JUP despite the crash?
A: Yes. Technical indicators suggest a possible reversal, and Jupiter’s fundamentals remain strong—surpassing $1 trillion in trading volume and launching new tools like Jup Mobile.

Q4: What’s the outlook for JUP in the near future?
A: If key support at $0.3371 holds, JUP could potentially rebound toward $0.50 or even $0.96, based on technical patterns and oversold conditions.

Q5: Where can I stay updated on crypto news like this?
A: For real-time updates, expert analysis, and market insights, follow the Bitrue Blog.