Lighter (LIT) recently faced rejection at the $3.79 price level, leading to a drop to $3.2 following five consecutive daily closes at higher highs. At the time of reporting, LIT traded at $3.4 after a 4.5% decline on the daily chart, while trading volume decreased by 24% to $122 million.
The price retracement coincided with reports from Onchain Lens indicating that Cumberland sold LIT on behalf of clients. Specifically, Cumberland deposited 2 million LIT tokens, valued at $6.94 million, to the OKX and Bybit exchanges through four separate transfers of 500,000 tokens each.
Despite the transfers from the liquidity provider, market data suggests ongoing spot buying activity. Coinglass data recorded $23 million in spot outflows for Lighter compared to $21.93 million in inflows, resulting in a negative spot netflow of $1.07 million. A negative netflow indicates that more tokens left exchanges than entered them, which can signal accumulation as traders move assets into private wallets.
On-chain metrics also showed increased activity. Data from DeFiLlama recorded Lighter's active addresses reaching a monthly high of 17,600, while new addresses rose to 743. The network also registered $20 million in USD inflows over a 24-hour period.
Technical indicators showed Lighter's Stochastic Momentum Index (SMI) remaining in the bullish zone near 64 without forming a bearish crossover, while the ADX DI with SMA indicator also reflected current market conditions. Market participants continue to monitor the $3.1 support level alongside resistance around the $3.7 mark.
