Shorts’ $72 million liquidation order is parked at 7.2, but the LIT market didn’t take the bait

Two hours ago, Hyperliquid and Lighter exposed $LIT the shorts’ Achilles’ heel: a $72 million liquidation order parked at 7.20. The market only moved from 4.719 to 4.73 and didn’t take the bait.

My view: Don’t chase at 4.669; watch 4.2468 for dip buying (4h SAR). Exit immediately if it breaks down—don’t linger.

The transmission is not complicated— with liquidation parked at 7.2, price has to move from 4.669 to 7.2 to ignite the fuse; funding is near zero, so shorts haven’t been squeezed or disarmed; if price weakens, this batch of shorts will instead profit and pressure the market. The fuse is still far away.

The technicals also point the same way—1h ADX at 46.7 signals a strong trend, but 1h SAR at 4.9797 has already flipped above price. BTC at 76515 is below ma7 at 76843, lacking fuel for a short squeeze.

Resistance above: 4.9797 (1h SAR)

Support below: 4.2468 (4h SAR dynamic support)

Key level: 4.2468. Hold it and watch 5.039; break below 7.2 and turn the page.

(Conclusion) Most likely, the range will be absorbed. Place a dip-buy order at 4.2468; cut losses and run if it breaks down, and switch to a long-chasing approach if it breaks above 4.9797 with volume.

Tap follow—I'll call it out immediately when the short squeeze ignites.

$LIT