Lighter's LIT drops 11% as spot volume nosedives 3x — traders swap hope for head-and-shoulders 😬

Lighter [LIT] fell more than 11% over 24 hours, sliding from a peak of $1.663 to a low of $1.4725 as daily sell volume climbed 20%. The pullback interrupted a two-day rally that had retraced roughly 50% of the token's prior range between a lower high of $1.90 and a lower low of $1.50.

The decline has tracked a sharp drop in platform activity. According to Blockworks, Daily Active Traders have fallen about 50% over the past week, dropping from 15,411 to 7,972. Spot volume on Lighter stood at $1.738 billion on June 17 and now sits at just above $531 million — a more than 3x decrease over the same window. Volume hit a monthly low of $182 million the previous day, roughly 10x below the peak seen in the past week.

The slowdown in usage has flowed through to revenue, with daily revenue down to $40K. Capital outflows have also intensified, with about 30 trades producing $445.3K in sell pressure. The price weakness mirrors broader weakness across DEX tokens, including Hyperliquid [HYPE].

On the chart, LIT rose over the prior two days inside an ascending trend channel before reversing near $1.70, forming a head-and-shoulders pattern with the head at $1.70, shoulders at $1.66 and a neckline near $1.60. Price broke below the neckline on heavy red candles. Open Interest rose from $24 million to above $25 million while price fell, a combination consistent with rising bearish positioning, and a long lower wick on the most recent candle confirmed sell pressure.

LIT reacted when it tested the $1.50 area, and MACD bars shifted from red to orange, a change that can indicate waning bearish momentum. A recovery would require holding above $1.50, clearing $1.56 and reclaiming the $1.60 neckline as support, conditions that have not yet been met.