The cryptocurrency market is brimming with excitement as Lighter (LIT) experiences a remarkable resurgence. Following a steep decline of over 30% from its all-time high last week, LIT has staged an impressive recovery, captivating both investors and analysts.
Breaking Down LIT’s Recent Price Action
After finding support at $2.5, LIT rallied 18% to reach a peak of $3.2, eventually stabilizing around the $3.0 mark, recording a 15.48% daily gain. The trading volume surged by 79% to hit $35 million, while its market capitalization climbed past the impressive $700 million milestone. These numbers indicate a significant influx of fresh capital into the altcoin.
Whales Powering LIT’s Upward Momentum
One of the key drivers behind LIT’s surge has been the involvement of cryptocurrency whales. Notably, a whale transaction saw the sale of 52.1 WBTC ($4.86 million) and the deposit of $3.36 million USDC into Lighter, which was used to purchase 1,119,001 LIT tokens at an average price of $3.
Shortly after, another whale followed suit, depositing $2.89 million USDC and acquiring 991,458 LIT tokens at $2.92 per token. Combined, these whale transactions amount to $6.25 million and fueled the acquisition of nearly 2 million LIT tokens, signaling immense confidence in the cryptocurrency’s potential.
Technical Indicators Signal Strong Momentum
Momentum indicators such as the Relative Strength Index (RSI) and Relative Vigor Index (RVGI) have confirmed LIT’s strong upward trajectory. The RSI surged to 90, placing the altcoin in overbought territory, while the RVGI’s Zero Cross climbed to 0.007 due to a bullish crossover. These metrics highlight substantial buying pressure, supporting the upward momentum.
However, market dynamics also show resistance. The buyer-seller strength indicator reveals higher selling pressure, with sellers holding a +39 strength compared to buyers’ negative -60. This distribution phase creates volatility, making it essential for investors to remain cautious.
The Future of LIT: Aiming for $4
With whales actively accumulating, LIT is well-positioned to test the $3.5 resistance and potentially aim for the $4 threshold. The altcoin’s renewed momentum showcases distinct signals of confidence. However, risks persist, as increased selling pressure could cause a retracement to $2.5 support.
If LIT continues on this trajectory, it could become a standout player in the competitive cryptocurrency space. For those considering investing, monitoring whale movements and market trends becomes crucial.
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