Why are projects like $LIT$ prone to decline? To put it simply, I can judge the general trend just by looking at the market data. Although there are still people shouting bullish on the square, the risks are already very obvious.

The key issue lies in the token distribution structure of the project. For top-tier projects, the airdrop proportion is often huge. What does this mean? A large amount of tokens flow into retail investors' hands. Ideally, after the airdrop is completed, strong funds should step in to push the price up, and retail investors can follow the trend. But in reality—once the news is released, the token price remains stagnant or even begins to weaken. At this point, retail investors' psychological defenses collapse.

No one would be foolish enough to hold on stubbornly. Retail investors only have one thought: get out quickly. Those who sell early can still make a little profit, while those who sell later become the bagholders. Once it starts, it’s a typical stampede-style decline, creating a vicious cycle. This is not a technical issue; it’s a psychological game and the harsh reality of the capital market.