The cryptocurrency market has been abuzz with excitement as the Lighter cryptocurrency token (LIT) surged by an impressive 16%, holding strong at $1.81. This bullish momentum has sparked interest among traders and investors, positioning LIT as a token worth watching in the coming days.
Lighter Defends Key Support Level
After a brief dip to $1.53, the LIT token successfully defended its critical $1.50 support level. With renewed buying activity, LIT climbed to a local high of $1.85 before settling slightly lower. Such resilience is a testament to whale investors and strategic buybacks fueling demand. Notably, trading volume has seen a 16% increase, with daily market action hinting at bullish momentum.
Key Metrics Signal Bullish Trend
According to CoinGlass, LIT’s Open Interest (OI) rose by 16% to $145.7 million, accompanied by a 28% increase in trading volume, reaching $178 million. When OI and volume rise simultaneously, it signifies growing participation in the futures market. Furthermore, Futures Netflow jumped 237%, reflecting dominance by buyers in the market.
Importantly, the Long/Short Ratio climbed just above 1, indicating an increasing number of traders are taking long positions, a strong signal of market optimism.
Whales Strengthen the Staking Pool
An interesting development during LIT’s price rally has been the activity surrounding the staking pool. Two whales significantly contributed to the liquidity, depositing a combined $2.32 million worth of LIT. By locking their tokens for yield, these actions reduced the market supply and boosted scarcity—a key factor in potential price appreciation.
As demand for staking grows, this positive stance by high-net-worth participants signals long-term confidence in the asset.
Buybacks Drive Supply Reduction
The Lighter team has also played an active role in ensuring upward price momentum through consistent token buybacks. Cryptolycus reports that over 2.4 million LIT tokens have been repurchased in less than a month. With supply decreasing and demand increasing, the risk of a supply shock adds to the token’s growing bullish potential.
Where Does LIT Go Next?
Technical indicators show promising signs for further gains. Despite failing to break the 50 level on the Relative Strength Index (RSI), increased buying pressure and a bullish crossover signal that LIT is working toward market dominance. To confirm a continuation of its upward trajectory, it must flip the EMA20 and push toward the $2 resistance level before targeting $2.50.
If upside momentum falters, traders should watch the $1.7 to $1.49 support levels where buying opportunities may emerge. However, the combination of market participation, whale activity, and buybacks strongly positions LIT for future growth.
Invest in LIT with Confidence
For those considering adding LIT to their portfolio, platforms like Binance offer a safe and reliable way to trade this promising cryptocurrency. With the token’s fundamentals indicating bullish growth, LIT is worth monitoring for both short-term traders and long-term investors.
Disclaimer: Always conduct thorough research and consult with a financial advisor before making investment decisions.
