Lighter continues to rise, hitting a high of $2.4 in three weeks. Lighter is currently trading for $2.39.
The daily chart shows a rise of 9.23%.
During the same time period, altcoins’ trading volume rose 53% from $39 million to $50 million. This shows a rising market.
The Lighter Whale has increased its holdings by $9.1 Million
The Lighter [LIT] Whales seem to have been a key factor in the extended market uptrend.
The following is a list of LookonchainA whale Ethereum OG has been accumulating LIT. The whale spent $9.1m in the last 2 months to purchase 3.91million.
The whale bought LIT worth over $1,000,000. Even though the whale has made a recent purchase, it continues to shop.
A whale who purchases during an upward trend shows that it has confidence in the future of the market and is expecting to see continued growth.
Markets for derivatives are strongly bullish
Ligheter’s trend seems to be boosted not only by the continued whale demand but also the activities in derivatives.
Coinglass reported that Derivatives volume increased 77%, to $131.18 millions. Open interest grew 10%, to $310,000,000.
It is a sign of strong trading activity when OI and Volume both rise at the same time.
On Binance the Long Short Ratio has risen above 1, while on OKX it remains below 1. At press time, the overall ratio was 1.04.
The ratio above 1 indicates traders who were bullish on the market and anticipated that the price would continue to increase. Over the years, short-term price increases have been caused by speculative demands. LIT might make even more money if the capital flows continue.
Growing On-chain Activity
Lighter’s on-chain activities have also increased, in addition to the market activity. The altcoin has seen its Active Addresses increase since the drop in July.
Active Addresses increased from 8,9k to 13,2k during this time period. The number of new addresses per day also increased from 388 up to 493.
Growing adoption and involvement was evident by the growing number of users. The demand for native tokens increases when the network activity is high. It is a confirmation of a rising price, which in turn confirms if the market will continue to rise.
Will the momentum for upward movement continue?
Lighter has experienced a strong upswing, boosted by the inflow of whale capital as well as network usage. The altcoin’s Relative Strength Index has been increasing since the bullish days. It is now at 58.
When the RSI moves into the positive zone, this indicates that demand is high and buyers are taking control. Stochastic Momentum Index, or SMI, confirms the strength of this upward trend.
When these two indicators rise, they indicate that the trend is likely to continue. If demand remains, altcoins will be able to overcome $2.7 resistance.
Final summary
- Lighter continued to collect LIT. He spent $9.1 Million to purchase 3.91 Million.
- Lighter [LIT] The bulls have extended their bullish streak by a further 9%, reaching a new three-week record of $2.4, with a target price over $2.7.
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Source: ambcrypto.com
