Buying interest returned to Lighter [LIT] as the token extended its recent recovery, supported by stronger trading activity and renewed demand across the market.
At the time of writing, the altcoin traded around $1.69 after gaining 7.34% over the previous 24 hours, while daily trading volume climbed 50.25% to $63.3 million.
The rally has kept LIT above the $1.50 support level and pushed it back toward the $1.74 supply zone.
Lighter also maintained a market capitalization of approximately $422.66 million, reflecting sustained participation as buyers challenged a major resistance area.
Can Lighter overcome its next major hurdle?
Lighter extended its advance within a well-defined ascending channel before reaching the $1.74 supply zone, where previous rallies had repeatedly stalled.
Buyers defended the $1.50 support level after a brief pullback, allowing price to recover and revisit the upper boundary of the structure.
However, repeated rejections beneath resistance showed that sellers continued protecting this region. Even so, the series of higher lows preserved the broader bullish structure throughout the channel.
The chart also identified $2.00 as the next major resistance beyond the supply zone.
If buyers reclaim $1.74 with sustained demand, price could continue toward that level. However, failure to clear resistance could keep Lighter trading within its current rising channel.
Selling pressure faded as the bullish crossover approached
Technical indicators reflected mixed conditions as Lighter tested overhead resistance.
The DMI remained constructive, with the +DI at 23.53 holding above the -DI at 14.92w. The ADX stood at 27.92, indicating that the prevailing uptrend retained reasonable strength.
Although the MACD line remained below the signal line, the histogram narrowed to -0.0118, showing that selling pressure had continued fading after the recent recovery.
This improvement suggested bearish pressure had weakened despite the bullish crossover not yet materializing. If the histogram continues narrowing and the MACD line crosses above the signal line, the indicator would confirm a bullish crossover.
Ultimately, the crossover will strengthen the case for another attempt above the $1.74 supply zone.
Where could liquidation pressure build next?
The liquidation heatmap revealed dense liquidity clusters between $1.70 and $1.75, placing the current price directly beneath an area likely to attract heightened volatility.
Several large liquidation pockets also appeared around $1.69. This suggests that a move above nearby resistance could trigger additional liquidations and accelerate the advance.
Meanwhile, sizeable liquidity zones rested near $1.62 and $1.56, providing downside targets if selling pressure increases. Those clusters showed that leveraged positions had concentrated around nearby price levels rather than farther away.
As a result, the next decisive move would likely emerge once either buyers or sellers force price through one of these heavily populated liquidity areas.
Can Lighter open the path toward $2.00?
Lighter maintained a constructive technical structure, and the ongoing momentum points toward a breakout above the $1.74 supply zone.
With buying pressure strengthening, the ascending channel is set to remain intact, driving price toward the $2.00 resistance level.
Final Summary
- Lighter held its ascending channel as buyers challenged a key resistance around $1.74.
- Fading selling pressure and overhead liquidations could support another breakout attempt if demand persists.
