Lighter [LIT] saw a significant surge of over 20% in the last 24 hours, marking a total rally of 45% over two days.
Currently, the altcoin’s Trading Volume has spiked by 87% to exceed $70 million, indicating increased market activity. Several factors contributed to this recent uptrend.
Reasons behind LIT’s recent rally
Improved Social Sentiment followed Ethereum Co-Founder Vitalik Buterin mentioning the platform in a fireside chat, which attracted fresh capital inflows.
Furthermore, Lighter integrated Tealstreet, a trading terminal that supports both centralized and decentralized exchanges [DEXs], enhancing liquidity access for traders.
The platform also expanded accessibility by integrating Telegram’s TON Wallet, catering to a wider range of crypto-native users.
Additionally, trading activity surged after the decentralized platform introduced SpaceX pre-IPO perpetual markets.
This move aligned with the increasing interest in tokenized stock trading on decentralized platforms. In addition to adoption growth, Lighter’s tokenomics tightened supply conditions.
During the week, the protocol burned over 500,000 LIT tokens valued at over $1 million, with total token burns surpassing $13 million.
Reportedly, Lighter exceeded Hyperliquid [HYPE] in daily burn activity, nearly doubling the burn rate.
The platform burned more than 70% of its daily revenue, while 145 million LIT tokens remained locked in liquidity pools. Nearly 57% of the circulating supply was staked, intensifying the ongoing supply shortage.
Are institutional investors still accumulating LIT?
There were indications that institutional investors were increasing leveraged exposure during the rally.
According to Onchain Lens, a whale known as Loracle initiated a 3x leveraged position worth nearly $1 million, consisting of around 898,000 LIT tokens. The whale reportedly added more exposure subsequently, contributing to the overall bullish sentiment surrounding the token.
With multiple fundamental catalysts aligning, LIT continued its upward trajectory on the price charts.
Can LIT surpass the $1.20 mark?
Lighter [LIT] formed a Triple Bottom around $0.80, with each retest triggering a rebound. The third rebound led to a breakout above the descending trendline resistance, confirming stronger bullish momentum.
Meanwhile, MACD Histogram bars continued to expand, and MACD signal lines trended upwards, indicating favorable momentum for buyers.
However, LIT faced resistance at the $1.20 level at the time of writing.
If bulls manage to establish $1.20 as a support level, the altcoin could target $1.55 next. However, resistance may be encountered near $1.35, $1.40, and $1.50.
Failure to sustain momentum at $1.20 could trigger a short-term pullback.
Key Highlights
- Lighter [LIT] witnessed a 45% surge in two days, with Trading Volume surpassing $70 million.
- Factors such as Vitalik Buterin’s mention, Tealstreet integration, TON Wallet support, and tokenized stock trading contributed to the increased market attention.
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