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LIGHT's recent rebound looks like a rally, but it's actually a classic trap to lure long positions. It dropped straight from 4.69 to 0.68, with the moving averages already in a complete bearish alignment. Now, the rebound hasn't even touched the 99-day moving average. Basically, it's just speculative capital pushing the price up to attract retail investors.
From a capital perspective, it's even clearer. Large investors are consistently holding high cash positions, and whenever open interest slightly increases, someone dumps. No one is truly bullish. For such coins lacking fundamental support, a rebound is just an opportunity for bears to make money.
From a practical standpoint, my approach is to lightly short in the 0.89-0.9 range, with a stop-loss set above 0.92. The first target is 0.75. If it really breaks below that, continue shorting below 0.68. Don't be fooled by this small rebound. For a coin that has experienced such a sharp decline, the rebound is usually just a temporary pause in the downtrend, and ultimately, it will return to the downward channel.