The recent trend of $LIT has provided quite clear signals. After a volume-driven decline, the price action clearly indicates a weak breakout. High trading volume is not a sign of bullish short squeeze; instead, it reveals that the main force is unloading at higher levels.

From a data perspective, the daily chart has broken through a key support level. A 16% decline accompanied by 87 million in trading volume is sufficient to confirm a trend reversal. This is not a simple technical correction but a systematic sell-off led by the bears. Changes in open interest need to be viewed in conjunction with price declines. In this context, everything points to the bears having the upper hand.

From a trading standpoint, shorting $LIT is the current choice. The range of 1.680 to 1.710 is a reasonable entry window. Setting a stop-loss at 1.780 is necessary for risk control; this level is rigid. If the market moves according to bearish logic, 1.550 is the first profit target, and 1.420 is a further downside space.

Psychologically, the market has shifted. The previous support zone has now become a resistance zone, and any rebound will encounter new selling pressure here. The rebound itself becomes an opportunity to further establish short positions. This psychological shift is the driving force behind the continuation of the trend.