Lighter (LIT) is emerging as a leading DEX in perpetual contract volume , with a sharp increase in perp Volume contributing to a more than 13% increase in LIT's price in 24 hours.
Amidst a broad recovery in the crypto market, LIT is benefiting from a surge in trading volume perps, but the price remains constrained in a sideways trading range due to opposing selling pressure from whales and some holder.
- Lighter's perp Volume increased by over 34% in 7 days, supporting LIT's short-term price rally.
- LIT continues to fluctuate within the $1.40–$2.04 range due to distribution pressure and Short selling activity from whales.
- To sustain the uptrend, the price needs to break above $1,805 and $2,041; otherwise, sideways movement may continue.
The volume of perpetual contracts is driving LIT prices up daily.
The rapidly increasing perp Volume on Lighter is reinforcing LIT's short-term upward momentum, as demand for DEX perps benefits from high leverage and privacy.
Perpetual futures trading is a prominent growth area in crypto, especially on Decentralized Exchange. LIT is mentioned as one of the top choices as trading activity increases in line with the market recovery.
According to aggregated data from defillama , Lighter's 7-day perp Volume has increased by over 34%. Among the protocols with larger market shares than LIT, only Hyperliquid (HYPE) and Aster (ASTER) achieved higher market shares.
Notably, Lighter's protocol metrics page on defillama recorded the Lighter network setting a new daily peak in perp Volume for the year at $7.53 billion. Along with the general altcoin recovery, these factors support the short-term price increase of LIT.
LIT prices remain sluggish despite double-digit increases due to ongoing selling pressure from distributors.
Despite a day-high surge, LIT remains stuck in a multi-week sideways trading range due to distribution pressure, selling/ Short activity, and conflicting sentiment between whales and retail investors.
For about a month, LIT/ USDT fluctuated between $1.40 and $2.04. This range is long enough to be XEM a consolidation/sideways trading phase, although daily upward movements may still occur when the market recovers.
On the 4-hour timeframe, LIT is shown to have broken above the SuperTrend indicator, suggesting buying pressure is starting to return. However, the Accumulation/Distribution indicator shows that approximately 94.88 million LIT are in a distribution state, reflecting that profit-taking or selling pressure still remains.
This explains why prices can rise rapidly within 24 hours but remain "stagnant" when viewed from a broader perspective: many positions are favored in the sell/ Short direction, while the price is only above the middle of the nearest sideways range.
In terms of price levels, the scenario of maintaining the uptrend is linked to a clear breakout above $1,805 and $2,041. Failure to break through these levels could prolong the sideways movement and become unfavorable if market conditions worsen.
The tug-of-war between whales and retail investors is determining the short-term trend.
Retail investors tend to buy on upward momentum, while whales increase their sell orders and open Short, creating a tug-of-war that makes it difficult for LIT to break through sustainably.
On the retail investor side, buying activity emerged following the recent rally. Token trading data on Etherscan shows retail Longing orders on Uniswap totaling approximately $800, according to the Token trading tracker on Etherscan . There were also some sell orders, consistent with a more cautious stance from large Capital .
Regarding whales, data Chia by Onchain Lens shows an address opening multiple Short positions, including LIT, according to the Onchain Lens data link. Notably, the LIT position in question is recording a profit of approximately $1.59 million with 3x leverage, even though the price continued to rise during the day.
As a result, whales have the advantage in the short term, while retail investors are mainly taking advantage of small pullbacks or rallies. For a clear breakout or reversal to occur, the whales' position balance needs to shift (reducing their Short/sell bias, or moving towards accumulation).
Conclusion: LIT benefits from the perps boom, but sustainable trends depend on whales.
LIT's biggest driving force comes from the sharp increase in perp Volume , but the risk lies in selling/ Short pressure from whales, which could keep the price Peg in a sideways trading range.
- The more than 34% increase in perpetual contract volume this week was a key catalyst for the more than 13% increase in 24 hours.
- Whales continue to favor selling/ Short, creating supply pressure to counterbalance retail buying.
- Two key levels to watch for to confirm a more sustainable uptrend are $1,805 and $2,041.
Frequently Asked Questions
Why can an increase in perps volume lead to an increase in LIT prices?
LIT is a Token tied to the Lighter DEX perps ecosystem, so when perp Volume increases, usage and trading activity on the network tend to become more vibrant. This usually improves short-term expectations and triggers momentum buying, although it doesn't guarantee a sustainable trend.
Why did LIT surge during the day but is still XEM to be trading sideways?
Over the longer timeframe, LIT continues to fluctuate within the $1.40–$2.04 range. 24-hour rallies may simply be consolidation phases within the accumulation zone, especially as distribution data and selling/ Short activity remain dominant.
What price points are XEM important for LIT?
The levels of $1,805 and $2,041 are XEM crucial for maintaining the upward momentum. Failure to break through these levels could lead to sideways trading and potential weakening if market conditions become less favorable.
How are retail and whales impacting LIT?
Retail investors tend to buy on upward momentum and place small Longing orders, while whales increase their sell orders and open Short. This opposition creates a tug-of-war between supply and demand, meaning that intraday price increases are not enough to translate into a longer-term uptrend.
