Overbought but unstoppable? LIT rallies 55% as demand stays strong

Lighter [LIT] was one of many standout bullish performers in latest hours of buying and selling. In keeping with CoinMarketCap information, the DEX platform token has rallied by 9.48% prior to now 24 hours and 54.95% prior to now week.

Its Open Curiosity was up by 8.32%, maintaining tempo with the value good points of the earlier 24 hours. Furthermore, the predominantly destructive funding charge has flipped positively, as LIT costs climbed previous the $2.20-$2.30 native provide zone.

The swift good points got here on the again of the decentralized buying and selling platform’s Q2 Investor Update Call. Among the many main bulletins on this name had been that 100% of the protocol income goes towards token buybacks, with 6 million LIT purchased again in Q2. Token burns are additionally within the plans.

The platform prices had been diminished, RWAs had been rising, new order sorts had been reside, and extra buying and selling instruments had been on the best way. The staff was additionally working with the CFTC in direction of changing into a regulated change.

These bulletins have probably given the altcoin the impetus to climb greater, however the transfer has been within the making for a number of weeks now.

Inspecting the Lighter value construction

The 1-day chart confirmed a bullish structural shift in Might, when the $1.32 native excessive was breached. Following this break, the buying and selling quantity started to increase as the costs climbed greater.

The RSI on this timeframe has been above impartial 50 for the whole lot of the uptrend, exhibiting regular upward momentum. It was at 79.7 on the time of writing, inside the overbought space.

The OBV was additionally trending greater since Might, exhibiting regular shopping for stress on the altcoin.

Merchants’ name to action- Purchase

There may be potential for a pullback towards $2, and presumably as deep as $1.75, that swing merchants and buyers can take into account as a super shopping for alternative.

Nevertheless, given the present momentum, such a pullback could not materialize. The present momentum would possibly carry LIT greater with out a sizeable pullback.

The bullish concept would start to crack if LIT costs slip under $2.0 and $1.75, and the 4-hour bullish bias would shift bearishly upon a session shut under the $1.47 swing low.

Last Abstract

• Lighter rallied strongly after the Q2 Investor Name replace that had platform-specific updates, staking updates, and buyback plans.
• The worth motion was firmly bullish, and a deep correction under the psychological $2 degree didn’t seem probably.