@samuelbkrzpq
Finally, consider the role of LP behavior: significant trades may provoke liquidity withdrawals if LPs fear impermanent loss, further thinning future depth and making subsequent trades more impactful. Conversely, if liquidity providers opportunistically add to rebalance exposure, they can dampen price moves. Understanding the incentives facing LPs and tracking net liquidity changes around large trades helps predict whether a big Uniswap transaction will produce a sharp but temporary gap or a structurally altered price level.
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