Throughout May, the cryptocurrency market saw a renewed wave of bullish momentum following a prolonged bearish trend. However, the current price action suggests that this recent upswing may not signal a full trend reversal.

Instead, the broader bearish structure appears to remain intact, and the downtrend could resume in the coming weeks. We take a closer look at Jupiter. If its price revisits its April low, it could imply further declines from current levels—offering a potentially attractive setup for short positions.

Jupiter technical analysis

JUPUSD - 1 Day Time Frame

Of course, every bearish scenario carries inherent risks, and it’s critical for traders to stay informed and practice disciplined risk management. That’s why, in this analysis, we outline the key levels, structural signals, and risk considerations you should know before taking action.

Traditionally, the first condition for considering a short position could be a sweep of Buy-Side Liquidity (BSL). As many experienced traders understand, this often presents an optimal opportunity for institutional and commercial participants to initiate shorts. Why? Because it enables them to match their sell volume with the Buy-Stop orders typically positioned above recent highs—a classic example of liquidity engineering in action.

However, for retail traders, a liquidity sweep alone may not offer sufficient confirmation. That’s why it’s crucial to wait for a daily close below the most recent key support zone—previously a point of bullish price delivery. If the price fails to hold this zone, the market structure shifts, and the probability begins to favor the bearish case.

Jupiter price target

Every well-planned entry requires a clear and disciplined risk management strategy, which should be in place before opening any position. In this scenario, a protective Stop Loss (SL) could be placed just above the internal high, as indicated in the attached chart. This helps safeguard against failed breakdowns or sudden reversals.

Regarding profit-taking, both partial and final targets can be aligned with Sell-Side Liquidity (SSL) levels—historically reactive zones where price tends to gravitate. These offer logical areas to reduce risk and secure potential gains.