ambcrypto.com
12 October 2026 18:57, UTC
Lighter [$LIT] gained more than 10% over the past 24 hours as the crypto market recovered from a brief correction. Its Market Cap had fallen below $1 billion but moved closer to reclaiming that valuation.
The rebound came alongside token burns, growing trading activity, and renewed market interest. But could these developments bring $LIT’s correction to an end?
Lighter’s buyback and burn mechanism offered one potential driver.
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The platform burned over 2.45 million $LIT tokens, valued at $9.50 million at press time. That reduced the circulating supply by 0.98%. The tokens had been bought back programmatically through the end of the third quarter of 2026.
Reducing supply can support prices when demand holds up, especially during a broader market recovery. Still, the burn alone cannot guarantee further gains.
Meanwhile, real-world asset [RWA] perpetual futures activity expanded across the sector. Year-to-date Cumulative Volume rose from $21 billion to $4.25 trillion, largely driven by Hyperliquid [HYPE], Binance, and Lighter.
Social interest also picked up ahead of Lighter’s Q3 investor update call, scheduled for mid-October.
Beyond those developments, the Altcoin Season Index reached a yearly high of 65, pointing to improving altcoin performance. That offered a supportive backdrop, though $LIT still needed to clear its own price hurdles.
On the charts, $LIT had bounced from rising trendline support since May. However, it entered a correction after reaching $5.48 in late September.
A potential double bottom near $3.50 hinted that selling pressure could be easing. Confirmation would require a break above the $4 neckline.
Here’s the catch: Unlike previous pullbacks over the past five months, $LIT had yet to revisit the rising trendline. That left the $3 area as another potential support if the $3.50 base failed to hold.
$LIT could therefore recover from the double bottom or retest the trendline before attempting another advance.
Buying pressure also cooled during the current session. Cumulative Volume Delta [CVD] registered approximately -1.98K $LIT, indicating that aggressive selling exceeded buying.
Meanwhile, the Relative Volatility Index [RVI] rose from 26 to 61 during October, suggesting stronger upward volatility.
A confirmed break above $4 could bring the $5 target into view. Losing $3.50 would increase the risk of a trendline retest, while losing $3 could weaken the broader uptrend.
