Lighter (LIT) surged toward $5.50 after Bitwise launched a Lighter Staking ETP, but sellers quickly rejected that level. The token posted two red daily candles, lost $5 support, and fell to $4.86. At press time, LIT traded near $4.87, down 11.2% in 24 hours. It fell below its nine-day Moving Average while the MACD formed a bearish crossover at 0.35, pointing to weakening momentum. Profit-taking appeared to weigh on LIT after gains of more than 60% over the past month. Exchange Netflow remained positive for four consecutive days, suggesting tokens were moving toward exchanges. The next token unlock was still three months away, so immediate pressure came from the recent price move. The Bitwise ETP had not yet begun staking.
Lighter [LIT] rallied toward $5.50 after Bitwise launched its Lighter Staking ETP, but the move was short-lived. Sellers rejected the price near $5.50, and LIT then posted two red daily candles.
The token lost $5 support and fell as low as $4.86. At press time, it traded near $4.87, down 11.2% in 24 hours.
LIT fell below its nine-day Moving Average, while MACD formed a bearish crossover and dropped to 0.35. Together, the indicators pointed to weakening momentum after the rally.
Profit-taking appeared to weigh on LIT after gains of more than 60% over the past month. Exchange Netflow remained positive for four consecutive days, suggesting tokens were moving toward exchanges.
That raised the possibility of more selling, though Exchange Netflow alone cannot establish that holders sold. The next token unlock was still three months away, so the immediate pressure appeared to come from the recent price move.
Learning Pill argued that staking and buybacks could help absorb supply. The analyst said 46% of circulating Lighter [LIT] was staked and more than 6% had been repurchased.
The Bitwise ETP offered exposure to the altcoin, but the product had not begun staking. Bitwise said staking would start after the ETP reached sufficient assets under management.
If selling persisted, LIT could test its 21-day Moving Average near $4.60. Losing that level could bring $4 into focus over the following weeks.
By contrast, easing profit-taking could help the altcoin reclaim $5 and challenge $5.40. That would require buyers to regain ground lost after the ETP launch.
