Lighters jumped 11.31% to $0.8818 as cumulative redemptions reached 9.55 million LIT, up from 7.48 million earlier in March.
This constant accumulation reflects constant demand from the protocol, which continues to remove tokens from circulation. As a result, almost 4% of the supply is now absorbed, reducing immediate availability on the sellers’ side.
Recent purchases, including more than 606,000 LIT in one week, have reinforced this pattern of sustained accumulation. Lower average buyback prices between $0.80 and $0.95 further increased efficiency, allowing more tokens to leave the market per dollar spent.
This supply tightening condition is now aligned with BED recovery, suggesting that structural support continues to strengthen below current levels.
LIT rebounds as channel weakens
Lighter rebounded from the $0.80 support zone after respecting the lower boundary of its descending channel. This reaction follows a series of lows, which had defined the broader downtrend since February.
However, recent candles showed reduced extension to the downside, indicating that bearish pressure was weakening near demand. As of press time, LIT has been trading around $0.88 while attempting to reclaim the short-term structure inside the channel.
The rate of outages has slowed, reflecting a shift in seller control. If this rally continues, the price will likely challenge resistance at $1.00, which aligns with previous consolidation zones.
Above this figure, $1.30 remains the next key level at which prior rejection has occurred. The Stoch RSI has rebounded from heavily oversold conditions, with readings now at 27.73 and 13.21.
This change follows a prolonged period of slowing momentum, during which prices have consistently posted lower lows. The indicator now shows a clear upward trend, reflecting the resumption of purchasing activity in the market.
Open interest grows with participation
Open interest jumped 33.62% to $143 million, signaling a sharp increase in leveraged participation. This rise occurs alongside price recovery, indicating that new positions are entering rather than closing out.
Traders are now showing growing interest in LIT as capital flows more quickly into derivatives markets. This expansion reflects stronger commitment and growing conviction among participants.
Unlike scenarios of falling open interest rates, which often signal uncertainty, this increase supports continued activity around current levels.
Funding remains positive as long positions dominate
Financing rates weighted by IO sitting at 0.0050% at the time of writing, maintaining positive positioning in derivatives markets. This sustained level indicates that long traders continued to pay premiums to hold their positions, reflecting confidence in the upward direction of prices.
Previous negative spikes had revealed aggressive short squeezes, which often preceded liquidation events. However, current conditions show that sentiment has stabilized with long positions remaining in control.
This change suggests that bearish conviction has weakened after repeated failures to push prices lower. As funding remains positive, it reinforces the broader structure in which buyers are gradually regaining their dominance in leveraged markets.
LIT now shows a strengthened structure as buybacks tighten supply while participation expands in derivatives markets. The price has stabilized above $0.80 and continues to rise as conditions improve.
This alignment suggests that the rally remains sustained, positioning LIT to challenge the $1.00 resistance zone.
Final summary
- Sustained buybacks continue to tighten supply, supporting price stability.
- Growing participation alongside improving structure suggests buyers are regaining control, which could lead to a continuation towards higher resistance areas.
