Buying interest returned to Lighter (LIT) as the token extended its recent rally, supported by stronger trading activity and renewed market demand.
At the time of writing, the altcoin was trading around $1.69 after gaining 7.34% over the previous 24 hours, while daily trading volume soared 50.25% to $63.3 million.
The rally kept LIT above the $1.50 support level and pushed it back towards the $1.74 supply zone.
Lighter also maintained a market capitalization of approximately $422.66 million, reflecting sustained participation as buyers challenged a major resistance zone.
Can Lighter overcome his next major obstacle?
Lighter extended its lead into a well-defined ascending channel before reaching the $1.74 supply zone, where previous rallies had repeatedly stalled.
Buyers defended the $1.50 support level after a brief pullback, allowing the price to recover and revisit the upper boundary of the structure.
However, repeated refusals despite resistance showed that sellers continued to protect this region. Despite this, the series of higher lows preserved the broader bullish structure throughout the channel.
The chart also identifies $2.00 as the next major resistance beyond the supply zone.
If buyers reclaim $1.74 with sustained demand, the price could continue towards this level. However, failure to break above resistance could keep Lighter trading in its current ascending channel.
Selling pressure fades as bullish crossover approaches
Technical indicators reflected mixed conditions as Lighter tested overhead resistance.
The DMI remained constructive, with the +DI at 23.53 holding above the -DI at 14.92w. ADX stood at 27.92, indicating that the current uptrend has maintained reasonable strength.
Although the MACD line remained below the signal line, the histogram narrowed to -0.0118, showing that the selling pressure continued to fade after the recent rally.
This improvement suggests that bearish pressure has weakened even though the bullish crossover has not yet materialized. If the histogram continues to narrow and the MACD line crosses above the signal line, the indicator would confirm a bullish crossover.
Ultimately, the crossover will strengthen the case for another attempt above the $1.74 supply zone.
Where might liquidation pressure build next?
The liquidation heatmap revealed dense liquidity clusters between $1.70 and $1.75, placing the current price directly below an area likely to attract increased volatility.
Several large pockets of liquidation also appeared around $1.69. This suggests that a move above nearby resistance could trigger additional liquidations and accelerate the advance.
Meanwhile, important areas of liquidity lie around $1.62 and $1.56, providing downside targets if selling pressure increases. These clusters showed that leveraged positions were concentrated around nearby price levels rather than further away.
As a result, the next decisive move will likely come once buyers or sellers force prices through one of these highly populated liquidity zones.
Can Lighter lead the way to $2.00?
Lighter has maintained a constructive technical structure and continued momentum portends a breakout above the $1.74 supply zone.
With buying pressure building, the ascending channel is expected to remain intact, pushing the price towards the $2.00 resistance level.
Final summary
- Lighter maintained its ascending channel as buyers challenged key resistance around $1.74.
- Decreasing selling pressure and overhead liquidations could support another breakout attempt if demand persists.
