Lighter returns a portion of the purchase interest [LIT] As the token continued its recent recovery supported by increased trading activity and renewed market demand.
As of this writing, altcoin is the currency that has been most discussed. The average price of the currency was $1.69, up 7.34% from 24 hours ago. Daily trading volume increased 50.25% and reached $63.3 Million.
LIT has risen above $1.50, the support level. It is moving back towards the $1.74 zone.
Lighter maintained an estimated market capitalization at $422.66 Million, reflecting the continued participation by buyers who challenged a significant resistance area.
Lighter’s next big hurdle: Can it overcome it?
Lighter The price of gold continued to advance in a clearly defined ascending channel, before it reached the supply zone at $1.74 where earlier rallies were repeatedly stopped.
The $1.50 level was defended by buyers after a slight pullback. Price recovered and returned to the upper limit of the structure.
They continued to defend this particular region despite repeated rejections. The channel’s bullish pattern was maintained by the higher series of lows.
On the chart, $2.00 was also marked as the next significant resistance zone beyond the supply zones.
Price could move towards $1.74 if demand is sustained. Lighter’s trading could be restricted to its current channel of rising prices if the resistance is not removed.
The selling pressure eased off as the bullish crossover approached
Lighter’s test of overhead resistance revealed mixed technical indicators.
The DMI was still positive. With the +DI standing at 23,53, it held above the negative DI (14.92w). ADX is at 27,92. This indicates that there’s still a reasonable uptrend.
The MACD line was below the signal line but the histogram shrank to -0.0118. This shows that the selling pressure has continued to fade after the recent rebound.
The improvement in the market indicated that bearish pressure was fading, despite the fact that the crossover to bullish has not yet occurred. Indicator confirms a bullish cross-over if histogram keeps narrowing, and MACD’s line crosses the signal.
In the end, the crossover would strengthen the argument to try again above the 1,74$ supply zone.
What could be the next step in liquidation?
Liquidity clusters were visible between $1.70 – $1.75. The price of the stock is now directly under an area that will be prone to increased volatility.
Around $1.69, several large pockets of liquidation also emerged. It is possible that an increase in price above the nearby resistance would trigger more liquidations, and speed up the move.
While large liquidity zones rest near $1.62 – $1.56. These areas provide targets for the downside if there is increased selling pressure. These clusters indicated that the leveraged positions were concentrated near price levels, rather than further away.
The next move will likely be made when either the buyers or sellers push their price into one of these highly populated liquidity zones.
Lighter can it open up the way to $2.00?
Lighter’s technical structure was constructive, and its momentum continues to point towards a breakout over the $1.74 zone.
As the upward channel remains intact due to the strengthening of buying pressure, price is expected to continue moving towards $2.00 as a resistance level.
Final summary
- Lighter’s ascending channel held as buyers challenged $1.74 resistance.
- If demand continues, a new breakout could be supported by fading selling pressures and liquidation of overhead costs.
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Source: ambcrypto.com
