Lighter [LIT], the native token of the perpetual decentralized exchange (DEX), rallied over 15% in the past 48 hours.
The latest pump lifted the token from below $3.50 to over $3.94. This raised hopes that $5 could be the next target if $4 is cleared. However, the token has struggled to crack above $4 despite an 110% explosive run in August.
Ahead of the Fed rate decision on the 15th of September, the altcoin could extend its sideways structure below $4 despite strong traction on the DEX.
Will Lighter crypto stay below $4, or eye $5?
On the daily charts, the token has toiled below $4 since late August. Unsurprisingly, August’s mega rally was due for some cool-off as the Relative Strength Index (RSI) hit overbought territory.
The ATR (Average True Range, red) has gone flat and begun trending downwards, indicating that the volatility seen in August has eased and tapered. Unless the metric shoots up with strong trading volume, any breakout above $4 could become a “fakeout.”
The sideways thesis could be invalidated if the broader crypto market extends its recovery. In such a scenario, LIT could clear the $4 overhead hurdle and eye $4.50 or $5.1.
Robinhood Chain improves Lighter crypto DEX growth
The DEX saw $39B in perp volume in August, a slight increase from $36B seen in July. Part of the traction was from Robinhood integration. Lighter powers perps on Robinhood Wallet. The same infrastructure is behind the perps markets on Robinhood Chain, an Ethereum L2.
Recently, the fintech firm said that perps volume on its platform from Lighter hit $7.3B in two months. This was one of the factors behind the mid-week LIT rally.
That said, the DEX’s revenue rose 24% from $2.14M to $2.62M amid the renewed traction in August.
Over the same period, the DEX’s fees jumped by 30% from $2.7M to $3.5M. Since most of the revenue goes to LIT buyback, it could boost the altcoin’s uptrend prospects if the traction persists.
Overall, Lighter has seen strong growth recently, partly due to Robinhood integration. But the token’s plan to clear the $4 overhead hurdle may depend on macro factors.
Final Summary
- LIT surged 15%, but the $4 overhead roadblock persisted ahead of the Fed rate decision.
- Lighter revenue increased by 24% to $2.6M in August and could boost LIT buyback.