Lighter [LIT] reversed a five-day downtrend with an 11% surge, climbing from a low of $4.00 to $4.68 before settling at $4.55. The recovery was accompanied by strong market activity, with trading volume surging 52% to reach $75 million and turnover rising to $37 million, signaling renewed buying pressure.
Whale-level accumulation reinforced the upside momentum. According to Arkham data, a large investor withdrew 500,000 LIT from the Lighter protocol, worth approximately $2.07 million. The timing of the whale purchase during the rally suggests confidence in further price appreciation.
Market interest in Lighter has intensified alongside developments surrounding the CLARITY Act. The regulatory initiative has drawn attention due to connections between key figures and regulatory bodies, with analysts noting potential implications for the cryptocurrency sector's regulatory framework.
Derivatives markets showed aggressive positioning by traders. Open Interest surged 13% to $512 million, while derivatives trading volume jumped 127%. On major exchanges, traders predominantly took long positions, with a Binance long-to-short ratio of 2.8.
Technical indicators reflected short-term bullish momentum. Lighter flipped both its 9-day and 21-day moving averages, while the Stochastic RSI formed a bullish crossover, suggesting buyers were gaining control. However, the indicator remained at levels indicating the buying trend was still developing.
For the uptrend to sustain, analysts noted that LIT would need to maintain support above its short-term moving average near $4.40.
