LIT's Chart Looks Like a Buffet 🍽️ — Buyers Eye $1.74, Bears Eye $1.50

Lighter [LIT] traded near $1.69 at press time, up 7.34% over the previous 24 hours, with daily trading volume climbing 50.25% to $63.3 million and market capitalization at approximately $422.66 million. The move extended a recovery that has kept LIT above the $1.50 support level and pushed it toward the $1.74 supply zone, where prior rallies have repeatedly stalled. The advance unfolded within a well-defined ascending channel, preserving a structure of higher lows.

The latest bounce follows a sharp drawdown during which LIT fell more than 11% from an intraday high of $1.663 to a low of $1.4725, with daily sell volume rising 20%. The two-day rally before that decline represented a 50% retracement of a prior range defined by a lower high at $1.90 and a lower low at $1.50. On-chain and venue data from Blockworks showed daily active traders falling 50% over the past week, dropping from 15,411 to 7,972, while spot volume slid from $1.738 billion on June 17 to about $531 million, a decline of more than 3x. Spot volume hit a monthly low of $182 million the prior day, roughly 10x below the weekly peak, and daily revenue contracted to $40,000, with capital outflows producing $445,300 in sell pressure across roughly 30 trades.

Technical indicators reflected mixed conditions as LIT tested overhead resistance. The DMI remained constructive, with the +DI at 23.53 above the -DI at 14.92 and an ADX at 27.92. The MACD line remained below the signal line, but the histogram narrowed to -0.0118, showing that selling pressure had faded without yet producing a bullish crossover. Open Interest rose from $24 million to above $25 million as price declined, and on the prior breakdown the MACD bars had shifted from red to orange, a configuration the source noted as indicating potential exhaustion by bears before bulls reacted at $1.50.

The liquidation heatmap identified dense liquidity clusters between $1.70 and $1.75, placing price directly beneath a region likely to draw heightened volatility, with additional pockets around $1.69, $1.62 and $1.56. A reclaim of $1.74 with sustained demand would set up a run toward the $2.00 resistance level, while a failure to clear the supply zone could keep LIT rotating within the rising channel. The decline was consistent with broader weakness across DEX tokens, including Hyperliquid [HYPE].