The price of Lighter has surged over the past two days, expanding its gains as bullish sentiment returns to the entire cryptocurrency market. LIT has risen in value alongside a recovery in risk appetite, and movements within the internal network have also supported this increase.
Lighter has begun fulfilling its promises post-launch. Whether the current price surge will continue is being watched closely.
The Lighter team shares the latest information
The Lighter team started the buyback program on January 6. This marks an important milestone for the project. The program was announced via social media, and the team shared a direct link to the treasury wallet.
The public treasury account held approximately 187,733 LIT at the time. The value at that time was $564,609. While the absolute amount itself is not particularly large, the action itself carries weight. This movement aligns with the promise made during the LIT launch.
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"Revenue from flagship DEX products and upcoming products/services can be tracked in real-time on-chain and allocated based on market conditions for growth and buybacks. We are developing from a long-term perspective. Maximizing long-term value is the goal," the Lighter team announced on December 30.
Data on capital flows corroborates recent price trends. The Chaikin Money Flow (CMF) indicator is showing an increase in capital inflow during the recent uptrend. CMF combines price and volume trends to evaluate which side, buyers or sellers, has the momentum.
Previously, negative signs were also observed. On January 1, LIT formed a bearish divergence. This was due to increasing outflows while prices were rising. This gap led to a pullback the following day, confirming the weakness of the support at that time.
The situation has changed dramatically in the last 48 hours. With rising prices, outflows have decreased, and the accumulation trend is strengthening. The alignment of price and capital flow is evidence that investors are in agreement with this movement, indicating a potential transition to a genuine upward phase rather than a temporary rebound.
Increased buying pressure does not mean LIT is overbought.
Momentum indicators also confirm the strengthening of the upward trend. The Money Flow Index (MFI) maintains a level above the neutral line, indicating sustained buying pressure. MFI incorporates both price and volume elements, making it a useful indicator for supporting movements.
In the case of LIT, the rise in the MFI coincides with the price increase. This synchronization suggests that buyers are actively participating. A positive MFI reduces the risk of a sharp reversal in the short term.
Furthermore, the indicator has not yet broken through the overbought level of 80.0. It has not reached the peak of buying, and price increases are expected to stabilize for a while.
Target level for LIT price
The price of LIT has risen by 18.3% in the past 24 hours and is currently around $3.11 at the time of writing. Reflecting the recovery of bullish sentiment, the possibility of a short-term trend reversal is also increasing. Recent price movements indicate that LIT is attempting to break out from its downward trend.
Although LIT temporarily broke above the declining trend line, confirmation requires overcoming resistance on a daily basis. The key level to watch is $3.19. If this zone can be converted into support, the breakout will be confirmed, strengthening the movement of continued upward action.
If sentiment changes, there remains a downside risk. If selling pressure strengthens again, LIT could fall below $2.97. In this case, the price could drop to around $2.77, invalidating the bullish hypothesis and reintroducing the risk of a consolidation or correction phase.
