Smaller tank means it’s running more which means more heat. This leads to more condensation in the tank. It’s a good idea to run your line up the wall 12-15’ and back down. Then the air can cool and moisture precipitate back out and drip down the line. Of course having a water separator somewhere is even better but you can also disconnect the line and empty any accumulated water in the line. So I guess output down then up 15’ then back down to the gun. Still need a desiccant at the gun but it will last longer (throw it in a ziplock between coats if for any real length of time). Btw doing all of this probably means a larger tank would be helpful. The more air line, the more the pressure drops.