LIT token jumps 11% as golden cross appears
Lighter, a perpetual decentralized exchange protocol, saw its native token $LIT surge 11% over the past day. Market sentiment has shifted in favor of the bulls, but two major factors could still slow the rally.
Golden Cross and MFI confirm bullish momentum
The rally followed a bullish crossover known as the Golden Cross. The Moving Average Convergence Divergence indicator saw its MACD line cross above the 9-day signal line. That pattern often signals a strengthening rally as momentum builds. The histogram bars are also growing, which backs up the price action.
The Money Flow Index, which tracks capital flowing in and out of the asset, rose into bullish territory with a reading of 56. Readings between 50 and 80 are considered bullish. The MFI has dropped slightly from its recent peak, suggesting some profit-taking is happening. Still, the overall reading confirms the market is in a bullish state.
Resistance above price has turned back $LIT three times
The upward path is not without obstacles. AMBCrypto’s analysis identified a resistance level just above the current price that has pushed $LIT back on three separate occasions. Each time, the token retraced and consolidated within a channel between support and resistance.
A clean break above this level with sustained momentum could open the door to a 34% rally toward $1.38, which is the peak of the consolidation channel. But if momentum fades, the token may struggle to push higher.
TVL drops $386 million since March
Total Value Locked, which measures the total value of crypto assets deposited into a protocol’s smart contracts, has fallen. Since March 1, roughly $386 million has been pulled from Lighter’s TVL. At press time, the TVL stands at about $488 million, according to DefiLlama. That means the withdrawn capital is nearly equal to what remains locked.
A declining TVL often signals that investors are reducing their longer-term commitment. However, protocol fees tell a different story. In the past 24 hours, traders generated about $116,000 in fees, the highest since May 7. That confirms more trades were finalized and user activity is growing, even as TVL drops.
