Lighter (LIT) soared 10.37% in the past 24 hours to trade around $1.53 as buyers attempted to stabilize the price action. This decision follows a strong correction of 20% from the $1.80 resistance zone that triggered significant profit-taking earlier this month.
Since then, renewed attention to Lighter’s AI-linked perpetual contract listings and its ongoing token buyback program has coincided with an improvement in market sentiment. Trading activity also increased, with daily volume up 20.83% to $59.7 million.
However, the rebound only recovered part of the recent decline, leaving the token below its previous high. As a result, LIT has returned to a key resistance area that is expected to give way before a broader recovery can develop.
Can recovered support fuel a bigger rebound?
After finding demand close to the ascending support trendline, ON recovered above the important $1.3825 level and continued to form higher lows. The structure remained constructive as the price approached the $1.5682 resistance zone, which was the closest barrier ahead of the broader $1.80 resistance zone.
At press time, the RSI climbed to 59.20 after cooling from overheated conditions, indicating that buyers had regained strength without pushing the market into overbought territory. Meanwhile, the MACD remained above the signal line and zero line, showing that bullish conditions persisted despite the recent correction.
However, the histogram has started to flatten, suggesting that buying pressure has eased from the rally that preceded the rejection. If buyers get a move above $1.5682, another test of the $1.80 area could follow.
Foreign exchange outflows continue to reduce the available supply of LIT
Beyond price action, FX flow data continued to support the recovery narrative.
LIT saw a net flow of around -$390.62K on June 8, extending a broader trend of tokens leaving trading platforms. Such movement often reflected holders moving their assets into private wallets rather than positioning them for immediate sale.
Although a single day of negative net flows alone rarely determined market direction, the continued absence of significant FX inflows suggested that selling pressure remained relatively limited.
Additionally, the outflow trend aligns with Lighter’s ongoing buyback activity, which has already removed over 14.47 million LIT tokens from circulation. As a result, foreign exchange supply remained more constrained than it was during the recent correction.
Funding Data Reveals Traders Still Bullish
Derivatives traders also maintained a constructive stance despite the recent volatility. At the time of going to press, the Funding rate weighted by IO recorded 0.0057%, keeping the metric in positive territory. This reading indicates that long position holders continued to pay a premium to maintain their exposure.
Unlike the conditions often associated with weak rebounds, traders did not aggressively exit their bullish positions following the rejection of $1.80. Instead, positioning remained biased toward further upside.
However, financing levels have remained relatively moderate, suggesting that debt has not reached excessive levels. The balance could prove important because highly crowded long trades often increase liquidation risks during pullbacks.
For now, futures market participants appear willing to support the recovery while avoiding extreme optimism.
Is the fix finally complete?
LIT recovered from recent lows, while foreign exchange outflows and positive funding rates continued to support sentiment. However, the price remained below the $1.80 rejection zone that triggered the previous decline.
A decisive break above $1.5682 would strengthen the recovery case and could open the door to another challenge to higher resistance. Until then, the recent advance would remain an attempt at a recovery rather than a confirmation that the correction is completely over.
Final summary
- LIT has recovered some of its losses but remains below key resistance levels.
- Currency outflows and positive financing continue to support the ongoing recovery attempt.
