Lighter rises 9% as whale buys $9.1M LIT – Is $2.70 next?
A Lighter whale increased LIT holdings having spent $9.1 million to buy 3.91 million LIT.
Lighter has continued with its upward trajectory, rising to a three-week high of $2.4. As of this writing, Lighter was trading at $2.39
, marking a 9.23% on the daily charts.
Over the same period, the altcoin’s trading volume climbed 53% to $49 million, indicating growing market participation.
Lighter whale raises holdings to $9.1 million
Amid this Lighter [LIT] extended uptrend, it seems whales have played a major role in sustaining the market demand.
According to Lookonchain, an Ethereum OG whale has kept accumulating LIT. Over the past 2 months, the whale has spent a total of $9.1 million to buy 3.91 million.
In the recent purchase, the whale scooped up over $1 million worth of LIT. Even after the recent purchase, the whale is not done and is continually buying.
When a whale buys during a strong uptrend, it shows confidence in the market, expecting continued gains.
Derivatives markets hold strongly bullish
Besides the sustained whale demand, Ligheter’s uptrend seems also strengthened by activities on the derivatives.
According to Coinglass data, Derivatives Volume rose 77% to $131.18 million while the Open Interest climbed 10% to $310 million.
With OI and Volume rising alongside each other, it indicated strong market participation as traders opened new positions.
Meanwhile, the Long Short Ratio climbed above 1 on Binance and remained below 1 on OKX. The overall ratio rose to 1.04 at press time.
When the ratio remains above 1, it suggests traders were mostly bullish and expected the market to continue rising. Historically, speculative demand has resulted in short-term price pumps. If this capital continues to flow, LIT could make more gains.
On-chain activity growing
Besides the actual market demand, Lighter is also experiencing increased on-chain activity. For starters, the altcoin’s Active Addresses rebounded from July’s drop and have been on the rise over the past week.
Over this period, Active Addresses rose from 8.9k to 13.2k. At the same time, the new daily addresses rose from 388 to 493.
The rising user base indicated growing adoption and participation. Usually, when network activity rises, it results in stronger demand for the native token. This acts as a bullish confirmation, especially with the price rising.
Can the upside momentum hold?
Strengthened by whale capital inflow and network usage, Lighter is experiencing strong upward momentum. In fact, the altcoin’s Relative Strength Index, since it formed a bullish two days, has been on the rise, hiking to 58.
With RSI edging into the bullish zone, it suggests demand is strong, and buyers are in control. This upside strength is further confirmed by the Stochastic Momentum Index (SMI).
With these two indicators rising, it signals the likelihood of the trend continuation. Thus, if demand holds, the altcoin will flip $2.7 resistance.
Final Summary
- A whale continued to accumulate Lighter, bought $1 million worth of LIT, having spent a total of $9.1 million to buy 3.91 million.
- Lighter [LIT] extended its bullish streak, rising 9% to a three-week high of $2.4, as bulls target a move above $2.7.
