Lighter rebounds after 20% crash: Can LIT push back toward $1.80?

Lighter [LIT] climbed 10.37% over the past 24 hours to trade around $1.53 as buyers attempted to stabilize price action. The move followed a sharp 20% correction from the $1.80 resistance zone that triggered heavy profit-taking earlier this month. Since then, renewed attention around Lighter’s AI-related perpetual contract listings and its ongoing token buyback program has coincided with improving market sentiment. Trading activity also increased, with daily volume rising 20.83% to $59.7 million. However, the rebound has only recovered part of the recent decline, leaving the token below its previous high. As a result, LIT returned to a key resistance area that would need to give way before a broader recovery could develop. Can reclaimed support fuel a larger rebound? After finding demand near the ascending support trendline, LIT recovered above the important $1.3825 level and continued forming higher lows. The structure remained constructive as price approached the $1.5682 resistance zone, which stood as the nearest barrier before the larger $1.80 resistance area. At press time, the RSI climbed to 59.20 after previously cooling from overheated conditions, indicating buyers had regained strength without pushing the market into overbought territory. Meanwhile, MACD remained above both the signal line and the zero line, showing that bullish conditions had persisted despite the recent correction. However, the histogram had started flattening, suggesting buying pressure had eased compared to the rally that preceded the rejection. If buyers secured a move above $1.5682, another test of the $1.80 zone could follow. Source: TradingView Exchange outflows continue reducing LIT available supply Beyond price action, exchange flow data continued supporting the recovery narrative. LIT recorded a Netflow of approximately -$390.62K on the 8th of June, extending a broader trend of tokens leaving trading venues. Such movement often reflected holders moving assets into private wallets rather than positioning them for immediate sale. Although a single day of negative Netflows rarely determined market direction on its own, the continued absence of significant exchange inflows suggested selling pressure had remained relatively limited. In addition, the outflow trend aligned with Lighter’s ongoing buyback activity, which has already removed more than 14.47 million LIT tokens from circulation. Therefore, exchange supply remained tighter than it was during the recent correction. Source: CoinGlass Funding data reveals traders still lean bullish Derivatives traders also maintained a constructive stance despite the recent volatility. At press time, the OI-Weighted Funding Rate registered 0.0057%, keeping the metric in positive territory. This reading indicated that long-position holders had continued paying a premium to maintain exposure. Unlike conditions often associated with weak rebounds, traders did not aggressively abandon bullish positions following the rejection from $1.80. Instead, positioning remained tilted toward further upside. Nevertheless, funding levels stayed relatively moderate, suggesting leverage had not reached excessive levels. The balance could prove important because heavily crowded long trades often increase liquidation risks during pullbacks. For now, futures participants appeared willing to support the recovery while avoiding extreme optimism. Source: CoinGlass Is the correction finally over? LIT has recovered from its recent lows, while exchange outflows and positive funding rates have continued supporting sentiment. However, the price remained below the $1.80 rejection zone that triggered the previous decline. A decisive break above $1.5682 would strengthen the recovery case and could open the door to another challenge of higher resistance. Until then, the recent advance would remain a recovery attempt rather than confirmation that the correction has fully ended. Final Summary LIT recovered part of its losses but remains below key resistance levels. Exchange outflows and positive funding continue supporting the ongoing recovery attempt.