The layout of the short position for $LIT shows a typical trend of downward movement. From a technical perspective, since its decline from the high of 4.389, the short-term moving average system has formed a bearish arrangement, with the K-line continuing to weaken along the downward channel, and the MACD indicator expanding in the negative zone with green bars. These signals collectively verify the current market structure dominated by bears.
From a fundamental perspective, there is a significant tension between LIT's market capitalization and token supply. The total supply of 1 billion tokens supports a market cap exceeding 3 billion, which lacks sustainability in the current market liquidity environment and is exacerbated by the absence of backing from leading ecosystems, further intensifying the release of selling pressure.
In terms of operation, it is recommended to set up a light short position near the current price of 3.46, with a stop-loss set at 3.55 (if this level is effectively broken, one must be cautious of trend reversal risks). The first profit target should focus on the critical support level of 3.1. If this level is lost, one can look further down to the value anchor point of 2.8. In a trending market, strict adherence to stop-loss discipline is necessary, while also leveraging the continuity of technical patterns to seize phase opportunities, rationally viewing the market's value return process.
