Lighter [LIT] climbed 10.37% over the past 24 hours to trade around $1.53 as buyers attempted to stabilize price action following a severe correction. According to reports from AMBCrypto, the token had experienced a sharp 20% correction from the $1.80 resistance zone that triggered heavy profit-taking earlier this month. The recovery move came after LIT declined to around $1.38, erasing a significant portion of the rally that had carried the asset to multi-month highs only days earlier. Trading activity also improved during the recovery, with daily volume rising 20.83% to $59.7 million, indicating renewed trader interest and reduced selling pressure.
Despite the recent volatility, derivatives traders maintained a constructive stance with the OI-Weighted Funding Rate registering 0.0057%, keeping the metric in positive territory. This reading indicated that long-position holders had continued paying a premium to maintain exposure, unlike conditions often associated with weak rebounds. The Long/Short Ratio remained at 2.20, highlighting a significant imbalance in favor of bullish bets, with 68.75% of top trader accounts remaining long while only 31.25% held short positions. Unlike the previous correction, traders did not aggressively abandon bullish positions following the rejection from $1.80, with positioning remaining tilted toward further upside. However, funding levels stayed relatively moderate, suggesting leverage had not reached excessive levels.
Following its rejection near $1.80, LIT recovered above the important $1.3825 level and continued forming higher lows, with the structure remaining constructive as price approached the $1.5682 resistance zone. According to AMBCrypto analysis, a decisive break above $1.5682 would strengthen the recovery case and could open the door to another challenge of higher resistance. The RSI climbed to 59.20 after previously cooling from overheated conditions, indicating buyers had regained strength without pushing the market into overbought territory. MACD remained above both the signal line and the zero line, showing that bullish conditions had persisted despite the recent correction, though the histogram had started flattening, suggesting buying pressure had eased compared to the rally that preceded the rejection.
Beyond price action, exchange flow data continued supporting the recovery narrative with LIT recording a Netflow of approximately -$390.62K on June 8th, extending a broader trend of tokens leaving trading venues. Such movement often reflected holders moving assets into private wallets rather than positioning them for immediate sale. The outflow trend aligned with Lighter's ongoing buyback activity, which has already removed more than 14.47 million LIT tokens from circulation, therefore exchange supply remained tighter than it was during the recent correction. Although a single day of negative Netflows rarely determined market direction on its own, the continued absence of significant exchange inflows suggested selling pressure had remained relatively limited.
