The whale who made millions of dollars from BTC shorts has recently turned their attention to LIT. They have been continuously opening short positions around $2.95, with multiple short orders placed at lower levels, seemingly targeting this small-cap coin.

But there might be more to this move. This big player has been gradually reducing their BTC short positions for profit, and now they are shifting to the altcoin market, with a somewhat rapid change in strategy. Perhaps they are genuinely optimistic about shorting LIT, or maybe there is another purpose—it's hard to tell in whale-level trading.

Small-cap coins like LIT inherently have limited liquidity. A single large whale dump can easily drive down the price, but it’s also not difficult to push the short positions into liquidation. With the liquidation line sitting at $4.75, a sudden spike could trigger a chain of liquidations. The market is currently oscillating, and in this environment, various funds are testing the bottom.

For retail traders, blindly following trades is too risky. Especially with coins like LIT, which are highly volatile—what you think is a good entry point for a buy low and short might actually be helping others to clear their positions. Whether the $3 support level can hold remains to be seen. Every move by whales can change the market rhythm, but don’t forget—most of their profits come from retail traders’ losses.

The main focus of the market still lies with BTC. Stay observant, trade cautiously, and try small positions to test the waters rather than going all-in and following the trend. That’s the way to survive this round of volatility.