The price of Lighter\u2019s native token LIT came under heavy pressure after breaking below a key technical support level, extending its post-launch sell-off and confirming a broader trend reversal.<\/p>\n\n\n\n
At the time of writing, LIT was trading around $2.07<\/strong>, down 20% in the past 24 hours<\/strong>. The token has now dropped 31% over the past week<\/strong> and is sitting roughly 73% below its all-time high of $7.86<\/strong>, which was set shortly after launch on December 30.<\/p>\n\n\n\n Over the last seven days, LIT has traded within a wide range, fluctuating between $2.07 and $3.21<\/strong>, highlighting ongoing volatility and uncertainty among traders.<\/p>\n\n\n\n Spot market participation has weakened alongside the price decline. Trading volume fell 64% to roughly $15 million<\/strong>, signaling reduced demand as the token slipped below its former support zone.<\/p>\n\n\n\n Derivatives markets, however, tell a different story. Data from CoinGlass shows perpetual futures volume surged nearly 118% to $21 million<\/strong>, while open interest climbed 47% to $1.69 million<\/strong>.<\/p>\n\n\n\n This divergence suggests that most market activity is being driven by short-term traders and speculative positioning<\/strong>, rather than long-term accumulation.<\/p>\n\n\n\n Lighter is a perpetual decentralized exchange built on Ethereum, offering on-chain execution and zero-fee trading. The project raised $68 million<\/strong> in funding from investors including Founders Fund and Ribbit Capital, valuing the platform at $1.5 billion<\/strong>, before launching its LIT token in late 2025.<\/p>\n\n\n\n In early January, LIT briefly rallied toward $2.89<\/strong> following the announcement of a treasury buyback program that allocates 50% of protocol fees<\/strong> toward token repurchases.<\/p>\n\n\n\n That rebound, however, proved short-lived. Much of the upside was driven by whale wallet activity, and momentum quickly faded as early holders took profits and broader sector rotation weighed on the token.<\/p>\n\n\n\n While Lighter has continued to expand its offerings \u2014 including tokenized stock products such as MSTR and CRCL, along with multi-signature wallet support \u2014 these developments have yet to meaningfully improve near-term market sentiment.<\/p>\n\n\n\n On the 1-hour chart, LIT continues to display a clear bearish structure. Price has printed lower highs and lower lows<\/strong> since failing near the $3.10\u2013$3.20<\/strong> resistance zone, with each rebound attempt losing strength more quickly than the last.<\/p>\n\n\n\n The token is trading below the 50-period moving average near $2.23<\/strong>, which has turned into dynamic resistance and continues to slope downward. Attempts to reclaim this level have been repeatedly rejected, suggesting limited dip-buying interest.<\/p>\n\n\n\n Bollinger Bands are expanding rather than tightening, indicating that downside momentum remains active. Price is hugging the lower band, a sign that selling pressure has not yet fully exhausted.<\/p>\n\n\n\n Momentum indicators reinforce this view. The 14-period RSI is hovering near 28<\/strong>, firmly in oversold territory. While this increases the chance of a short-term bounce, RSI has struggled to reclaim the 40\u201345 zone<\/strong>, showing that sellers still dominate overall control.<\/p>\n\n\n\n The $2.30\u2013$2.35<\/strong> area, which previously acted as a base, has now broken decisively. Immediate support sits around $2.00\u2013$2.05<\/strong>, where horizontal demand overlaps with the lower Bollinger Band. A sustained break below $2.00<\/strong> would likely open the door to further downside in the near term.<\/p>\n","protected":false},"excerpt":{"rendered":" The price of Lighter\u2019s native token LIT came under heavy pressure after breaking below a key technical support level, extending its post-launch sell-off and confirming a broader trend reversal. At the time of writing, LIT was trading around $2.07, down 20% in the past 24 hours. The token has now dropped 31% over the past…<\/p>\n","protected":false},"author":3,"featured_media":13466,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[1934,1951,109],"class_list":["post-13438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto-price","tag-lit","tag-tokenization"],"yoast_head":"\nSpot demand fades as derivatives activity rises<\/h3>\n\n\n\n
Buybacks fail to shift short-term sentiment<\/h3>\n\n\n\n
Technical structure remains bearish<\/h3>\n\n\n\n