According to reports from AMBCrypto, Lighter's native token LIT surged 11% in the past day as market sentiment shifted in favor of the bulls. The rally follows a Golden Cross pattern where the Moving Average Convergence Divergence indicator sees its MACD line cross above the 9-day signal line. This technical pattern typically precedes a strengthening rally, with momentum tracked through price action and growing histogram bars on the chart.
As reported by AMBCrypto, the Money Flow Index (MFI) has surged into bullish territory with a reading of 56. Any reading between 50 and 80 sits within the bullish zone, confirming the market remains in bullish condition. The indicator tracks the inflow and outflow of capital from an asset, providing valuable insights into capital flow patterns. While a slight decline from recent highs indicates some profit-taking activity, the overall reading maintains bullish momentum.
According to AMBCrypto's analysis, LIT is heading toward an upper resistance level that has historically hindered price advancement on three separate occasions. This resistance level has been a site of retracement each time, sending LIT back to consolidate within the channel between support and resistance. A clean break above this level with sustainable momentum would be a significant development, potentially opening the door to a 34% rally toward $1.38, representing the peak or starting point of the consolidation channel.
As reported by AMBCrypto, the Total Value Locked (TVL) has declined by approximately $386 million since the 1st of March, according to DefiLlama data. At press time, the TVL stands at approximately $488 million, meaning the capital withdrawn is nearly equal to what remains locked in the protocol. This declining TVL typically signals that investors are withdrawing capital from the protocol, reflecting a reduction in longer-term commitment from users.
Despite the TVL decline, traders drove protocol fees to approximately $116,000 in the past 24 hours, according to AMBCrypto's report. This represents the highest reading since the 7th of May, confirming that more trades were finalized within that period and that user activity is growing despite the TVL reduction. The fee performance tells a more encouraging story about ongoing user engagement and trading activity within the protocol.
