The decentralized exchange (DEX) sector is gaining momentum this week, with Lighter [LIT] emerging as one of the top trending tokens, recording over 12% in daily gains.
As the bullish trend continues, the question remains whether buyers will continue to push LIT to new heights.
What is the current price of LIT?
The recent surge in the DEX sector, fueled by whales’ leveraged purchases and increased discussions, has contributed to the 12% price rally.
Notably, a whale made a significant long position purchase of 2.5 million LIT tokens at a 5x leverage, with an average price of $0.9184. This move played a key role in pushing the price above $1.
As a result, the position’s value has risen above the liquidation price of $0.8566, leading to an unrealized profit of more than $493K for the whale.
Furthermore, there has been a noticeable shift in capital towards DEX tokens like EDGE, as social media mentions for tokens like EdgeX [EDGE] have spiked, resulting in a 4% price increase after a previous decline of over 10%.
The liquidation of short positions between $1.069 and $1.10 has further accelerated the upward movement, with price clusters forming between $1.11 and $1.18, indicating potential price shifts towards higher levels.
On the other hand, there is a light liquidity cluster just below the $1 level, raising concerns about potential price corrections if bulls fail to defend this level.
Increasing Interest from Lighter Bulls
Analysis of the price action chart reveals a pattern of higher highs (HH) for Lighter since late March, with corrections following each breach of an HH.
The current price is approaching the previous HH at $1.13, with a potential breakout setting LIT on a path towards the $1.18 liquidity cluster.
Despite a rise in Open Interest (OI) for the LIT/USDT pair on Binance perpetual contracts and a spike in net volume, profit-taking activities have kept prices around $1.13. Nevertheless, bullish interest remains high despite the formation of a double top pattern in OI.
A rejection at the $1.13 level could push LIT towards the slanting trendline support or the $1.05 buy wall level, marking a potential correction from the recent price surge.
Key Takeaways
- Lighter experiences a 12% price rally driven by whale purchases, social media mentions, and short liquidations amid a shift in capital towards DEX tokens.
- LIT faces a crucial test at $1.13 to determine its potential breakout towards the $1.18 price cluster.