The most successful traders share many traits, but one key principle stands out—they always approach the market as a game of volatility, never ensuring certainty. No analysis can predict price movements with 100% accuracy, which is why professional traders always consider multiple scenarios.

Despite the prevailing positive sentiment, certain cryptocurrencies, including Jupiter, could face a downturn in the coming days. What factors should traders be watching? Let’s dive into the key signals that could indicate a potential price decline.

While an asset’s price is fundamentally driven by its intrinsic value, short-term price movements are heavily influenced by liquidity withdrawal and the balancing of impulsive trends.

A simple way to visualize this is like painting a wall—if you make a quick stroke with a roller, you often need to go back over the area to even out the coverage.

Daily time frame analysis

JUPUSD - 1 Day Time Frame

Applying this concept to Jupiter, a short-term price decline appears likely. The price is currently trading in an area with multiple lows, which, according to retail trading theory, makes it a zone where buy positions accumulate, increasing liquidity.

Specifically, Stop Loss orders placed by buyers contribute to this liquidity pool. Institutional traders and commercial market participants typically wait for the price to dip below these levels, as it provides the necessary volume to fill their positions.

Jupiter price target

It remains uncertain whether the price will rebound with a bullish continuation after sweeping Sell-Side Liquidity. If this happens, it could confirm a potential buy entry for retail traders at a later stage. That said, as highlighted earlier, traders must be prepared for all scenarios.

There is also the possibility that after liquidity is withdrawn, the price may continue to decline instead of reversing.