![Lighter [LIT] Surges 18% on Circle Arc Integration, Whale Buying](/_next/image?url=https%3A%2F%2Fimages.askfuzz.ai%2Farticle_images%2Flighter-lit-surges-18-on-circle-arc-integration-whale-buying.webp&w=3840&q=75)
Lighter [LIT] surged approximately 18% in the past 24 hours, pushing its market capitalization above $1.20 billion. According to reports from AMBCrypto, the rally followed a seven-day correction and drew support from multiple factors including whale accumulation, network expansion, and a technical breakout. The token broke above a bull flag on the hourly chart, confirming a bullish continuation setup with the price climbing 12% above the $4.38 breakout level.
The primary catalyst for Lighter's rally was the integration of the DEX into Circle's Arc chain, as reported by AMBCrypto. This integration allows traders and builders to deposit assets directly into Lighter from Arc, with Circle's USDC business expected to provide stablecoin liquidity flow into the DEX. Analyst Michael van de Poppe noted that this development could address the liquidity concerns that have been limiting altcoin performance, suggesting that Bitcoin needs to move higher to increase overall market liquidity.
According to AMBCrypto reports, whale-linked wallets accumulated nearly 979,000 LIT worth $4.24 million. One of the three wallets moving in sync withdrew 208.6K LIT at an average fee of $4.27 from Bybit and OKX but has not yet staked these tokens. The same wallet had previously withdrawn 770K tokens that were staked, bringing its total position to the current 979K tokens. This accumulation activity demonstrates strong institutional interest despite the recent correction period.
As reported by AMBCrypto, LIT's next major target is the previous all-time high of $5.30. The Chaikin Money Flow (CMF) rose to 0.18, indicating stronger buying pressure and sustained capital inflows. The technical analysis shows that LIT broke above a bull flag on the hourly chart, with the price having climbed 12% above the $4.38 breakout level but not yet retesting that area. A clean breakout would return the token to price discovery mode.
According to AMBCrypto reports, the Open Interest (OI) of the LIT/USDT perpetual contract on Binance is declining while the price is rising, indicating short covering activity. This forced buying from traders who had bet on price drops but were buying back assets to close losing positions. However, analysts note that while fundamentals and network activity remain bullish, this outlook does not guarantee continuation on the charts. The selective altcoin season mentioned by Michael van de Poppe is attributed to thin market liquidity, with Bitcoin's movement higher needed to increase overall market liquidity.
