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Lighter’s LIT token saw tremendous exposure, initially attracting strong demand after launch. Momentum quickly faded as the price fell, after allegations of a possible secret token sale circulated the previous day.
These allegations have upset investors, sparked high volatility and raised questions about transparency and the first distribution of tokens.
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CEO Leiter responds to concerns
Concerns have increased further Reports claimed that Lighter secretly sold it Almost 10 million LIT to five wallets during the dropp phase. As the speculation spread, Lighter CEO Waldimir Novakovsky addressed the issue Publicly via Discord.
Novakowski explained that Litere signed an agreement with a third-party liquidity provider in 2024. Under this arrangement, the company was to provide liquidity support for 5 million LIT to the company during the private process period. According to the founder, the portfolios in question belonged to this liquidity partner and not to internal sales.
“There is no financial or personal relationship between any member of Lighter and this provider. They made this commitment before they had any data on the strength of the LLP. It was important to ensure that there was enough liquidity for the primitive trade, so it was just to be rewarded for taking this risk and providing a valuable service to the initial ecosystem,” said Vladimir.
Outflows control LIT
Despite the clarification, market reaction since the token’s launch has been decidedly underwhelming. Fear, uncertainty and doubt, also known as “FUD”, continue to dominate discussions in business channels. Many short-term rights holders seem unconvinced, opting to reduce exposure amid ongoing concerns about transparency.
This sentiment is reflected in technical indicators. Chaikin’s fund flow has fallen below the downtrend line, indicating continued capital flow. Selling pressure is currently on top of the accumulation, suggesting that investors are exiting positions quickly rather than waiting for a reversal to be confirmed.
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Macro momentum indicators reinforce cautious expectations. The volume of trades in the budget is tending to decrease, in line with the recent price weakness. OBV tracks volume flow to measure the conviction behind price movements, making it a useful confirmation tool during periods of volatility.
in Case LITprice and value are fixed at the same time. This consistency confirms the presence of a downward trend and not just a single profit. Weak volume support indicates declining confidence, as fewer participants are willing to accumulate at current levels despite the protocol’s underlying fundamentals.
Short-term forecast for the price of LIT
The price of LIT has fallen by 8.5% in the last 24 hours, trading near $2.43 at the time of writing. This decline reflects the combined effect of negative sentiment, persistent flows and weak technical structure. The short-term outlook remains under pressure unless buyers take back control.
The $2.43 level is now acting as immediate support. Failure to maintain this area can expose LIT to further loss. If the bearish momentum continues, the price may test the next major support at $2.31, where buyers may try to slow down the losses.
Reversing the bearish hypothesis requires a decisive recovery. LIT should restore $2.66 as support to offset the recent decline. A sustained movement above this level may open a path towards $2.82, indicating renewed confidence and stabilizing the market structure.
