Lighter (LIT) has recently shown a remarkable rebound, defying a previous sharp decline to stage an 18% rally. This recovery, marked by significant capital inflows and increased trading volume, highlights a fascinating divergence in investor sentiment and strategy that could dictate its near-term future.
Whale Accumulation Fuels LIT's Recovery
Following a substantial dip, Lighter (LIT) demonstrated a strong recovery, rallying to $3.2 before settling at $3.0, showing a 15.48% gain on the daily charts. This resurgence was predominantly driven by significant whale activity. Large investors strategically rotated capital from other crypto assets, with two notable whales alone purchasing approximately 2 million LIT tokens valued at $6.25 million. This sustained accumulation, observed even during price consolidations and retracements, indicates a calculated move by institutional players to absorb selling pressure and capitalize on LIT's potential upside, pushing its market cap past $700 million and daily volume up by 79%.
Divergent Market Dynamics and Future Outlook
Despite the robust whale-led recovery, the market exhibits a contrasting dynamic from retail investors. Earlier buyers have been selling into the rally, creating a "distribution" phase where selling pressure currently outweighs buying strength. This clash of interests leaves LIT vulnerable to potential retracements if retail selling accelerates. However, technical indicators paint a bullish picture, with the Relative Strength Index (RSI) soaring to 90 (overbought) and the Relative Vigor Index (RVGI) making a bullish crossover. These strong momentum signals suggest that if sustained whale support continues to absorb retail sell-offs, Lighter could potentially target $3.5 and even $4. Conversely, increased selling pressure from holders cashing out could see it retest the $2.5 support level.
