After plunging more than 30% from its all‐time high last week, Lighter [LIT] has staged a strong recovery.
The altcoin held firm at the $2.5 support level before rallying 18% to a peak of $3.2, followed by a modest pullback. At press time, LIT was trading at $3.0, showing a 15.48% gain on the daily charts.
At the same time, volume jumped 79% to $35 million, while its market cap surpassed $700, indicating fresh capital flows.
Whales accumulate $6.25M in LIT
Notably, amid the newfound momentum, investors, especially whales, stepped in and chased the rally. Inasmuch as so, whales started rotating from other crypto assets into LIT.
According to the Onchain lens, a whale sold 52.1 WBTC for $4.86 million and deposited $3.36 million USDC into Lighter.
The whale spent these funds and purchased 1,119,001 LIT tokens at an average price of $3. Following that, another whale followed suit and deposited $2.89 million USDC into Lighter.
This whale wallet bought 991,458 LIT at $2.92, according to Onchain Lens. In total, these two whales spent $6.25 million and purchased 2 million LIT tokens.
Even more significantly, these two whales are not isolated cases, especially when we examine the Whale Hunter on TradingView.
This metric showed sustained whale activity at lower prices, signaling substantial accumulation. For a long stretch, whale markets appeared while prices consolidated or retraced.
Such whale behavior suggested that each time LIT retraced, whales stepped in and quietly absorbed the rising selling pressure.
Over the past two days, whales transitioned from accumulation to expansion, with whale capital flows pivoting to an upward move.
Retailers sell into the rally
Surprisingly, as LIT signaled a recovery from an early slip, earlier buyers rushed back into the market and aggressively cashed out.
Looking at Buyer-seller strength, the market is currently stuck within distribution. Thus, every time Ligher made significant gains, investors sold into them.
At press time, sellers’ strength held at +39, while buyers’ strength remained in the negative zone at -60, indicating higher selling pressure.
Although buyers have shown a willingness to jump into the market at the prevailing rate, sellers have shown greater determination.
These market conditions leave the altcoin at risk of a retracement, especially if buyers fail to absorb the selling pressure.
Can LIT bulls put up a fight?
Lighter rebounded as investors, especially whales, jumped into the market and bought on any correction, pivoting LIT’s upside.
As a result, the altcoin’s Relative Strength Index (RSI) surged to 90, as of writing, reaching overbought territory. At the same time, its Relative Vigor Index (RVGI) Zero Cross jumped to 0.007 after it made a bullish crossover.
When these two momentum indicators hit such elevated levels, they suggest strong upward momentum backed by significant buying pressure. These conditions position the altcoin in a favorable spot for more gains.
Therefore, if whales continue to provide support, Lighter could make further gains, cross $3.5, and target the $4 resistance.
However, if holders cashing out accelerate downward pressure, it could breach $3 support and seek support around $2.5 again.
Final Thoughts
- Lighter surged 18%, hitting a high of $3.2 before slightly retracing to $3.0 at press time.
- LIT whales purchased 2 million LIT worth $6.25 million.
