$LIT /USDT — Liquidity Event Brief
Market Update
A long liquidation of approximately 7.04K USDT occurred near 2.3824, indicating forced exits from late or overleveraged longs. This move signals a liquidity sweep rather than confirmed trend failure, especially if follow-through selling remains weak.
Market Structure
Price has tapped a short-term liquidity pocket after rejection from the upper range. If LIT holds above the swept low and reclaims the liquidation level, it increases the probability of a reactive bounce. Failure to do so keeps price vulnerable to deeper demand tests.
Trade Perspective
Bias: Reactive and level-based
Potential Long Reaction
Entry Zone: 2.36 – 2.38
Invalidation: Clean break below 2.30
Upside Levels to Watch:
2.45
2.58
2.72
Continuation Risk Scenario
If price fails to reclaim 2.38 with volume, continuation toward the 2.25–2.20 demand zone is possible. No confirmation means no trade.
Liquidations remove leverage, not direction. Let price response confirm intent before execution
