Key Highlights
- LIT currently hovers around $3.77 following a 4%+ decline, retracing from September peaks that exceeded $5.
- Technical analysis reveals an upward trend line from May remains intact despite recent weakness.
- The RSI indicator has declined to 38.39 while MACD signals show bearish crossover, indicating diminished momentum.
- Bitwise introduced its LIT staking ETP product, BLIT, on Deutsche Bƶrse Xetra in recent days.
- Robinhood plans to extend perpetual futures trading to US-based customers while maintaining existing Lighter partnerships globally.
The Lighter (LIT) token slipped beneath the $4 threshold on September 30 as traders locked in profits following the asset’s impressive September performance.
The trading day began with LIT positioned near $3.93, briefly touching the $4.00 mark before descending to an intraday low of $3.65.
At the close of the daily session, LIT was changing hands around $3.77, representing approximately a 4.2% decline.
This downturn follows a rapid ascent earlier in the month that propelled LIT beyond $5.30 before encountering selling pressure.
The token continues to trade above an ascending trend line that has been established since May, despite the current retracement.
This trend originated near the $0.80 level and has maintained a series of higher lows throughout the summer months.
Technical indicators signal weakening bullish momentum
LIT maintains its position above a critical support band between $2.50 and $2.80, which previously served as resistance during August before September’s breakout occurred.
This zone may function as support once again should the ongoing correction persist.
Looking upward, $4 represents the initial resistance level bulls must overcome, followed by the $4.50 to $5.00 range.
The previous high between $5.30 and $5.50 remains the more significant obstacle for any sustained upward movement.
The Relative Strength Index on the daily timeframe has decreased to 38.39 after maintaining readings above 60 throughout most of September.
This places the RSI beneath the neutral 50 threshold, although it hasn’t yet entered oversold territory at 30.
The MACD indicator has also turned negative, with the MACD line positioned near 0.085, trading below the signal line at 0.253.
Recent developments from Robinhood and Bitwise influence sentiment
This price decline occurred mere days following Bitwise’s introduction of the Lighter Staking ETP on Deutsche Bƶrse Xetra, which tracks the Kaiko Lighter Reference Rate.
Robinhood Wallet currently enables qualified users to access perpetual futures trading via Lighter in approved markets beyond the United States.
The platform has announced intentions to introduce perpetual futures trading to eligible US-based customers as component of its broader active trading initiative.
Market analyst Axel Bitblaze commented on X that the price decline appeared to be an excessive response to Robinhood’s announcement.
He noted that Robinhood’s US perpetuals initiative is allegedly connected to Bitstamp, while Bitstamp currently operates EU perpetuals independently from Lighter’s separate Wallet integration in different territories.
Bitblaze emphasized that Robinhood’s Wallet documentation continues to identify Lighter as the exchange facilitating these transactions, with no official confirmation of the existing partnership being terminated.
Robinhood Europe offers LIT for direct trading and has publicly disclosed a financial investment in Lighter through participation in its Series B funding round.
LIT is currently navigating its most significant correction since the September rally commenced, with price action maintaining support above its longer-term ascending trend line.
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