I answered a similar question in Twitter:

“

The price increases and is about to leave your range. Adjusting the position will "lock in" your impermanent loss.

Will IL be larger if the upper tick is 20% higher than the initial price, or if it is 2% higher? Ignore gas fees.

Answer:
•IL(+20%) = -0.4%
•IL(+2%) = -0.005%

“

Even if you rebalance the ±2% position 10 times in response to a net +20% move, the IL will still be ~10x smaller AND your effective liquidity will be ~10x larger.