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LTC's recent trend has been quite aggressive, with the 4-hour K-line's KDJ J value soaring to 85, clearly in overbought territory. It looks like a strong rally, but the details don't add up—although the MACD has a bullish crossover, the momentum histogram is shrinking, which indicates a problem. The candlestick pattern has formed a standard bearish flag, with a long upper shadow encountering strong resistance around 76, all pointing to a signal: the bulls lack follow-through momentum.
From the market perspective, there are obvious signs of the main force enticing more buyers at this level. The volume contraction during the rebound often signals distribution, and it's also an ideal opportunity to enter short positions. This technical divergence is quite clear, and the outlook remains bearish.