Key Takeaways:
- Lighter dropped 20% to $1.38 after rejecting the $1.80 resistance level
- Binance's top traders remain heavily long with a 2.20 Long/Short Ratio
- A hold above $1.38 could drive a rebound toward the $1.55-$1.60 liquidity zone
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Lighter drops 20% to $1.38 as Binance traders stay heavily long
Binance's top traders are betting on a Lighter rebound even after the token erased a fifth of its value in 24 hours.
Lighter fell 20% to $1.38 after failing to break above the $1.80 resistance level, erasing most of the gains from a rally that had pushed the token to multi-month highs earlier this week.
CoinGlass data showed 68.75% of Binance's top trader accounts remained long as of June 5, with the Long/Short Ratio at 2.20 — a reading that typically signals concentrated bullish conviction among experienced traders despite the sharp correction.
Trading volume dropped 17.58% to $128.6 million during the sell-off, suggesting reduced participation after the rejection at $1.80. The MACD indicator remained in bullish territory with the line above the signal line and both above zero, though the histogram had begun shrinking — a pattern that leaves room for buyers to regain control if support holds.
The $1.38 level represents a key breakout zone from the prior rally. A sustained hold could drive a rebound toward the $1.55-$1.60 liquidity cluster, where CoinGlass data showed dense concentrations of leverage that markets frequently target. A breakdown below $1.38 would expose the $1.12 support level and shift the focus to deeper downside.
The concentrated long positioning carries risk. If LIT fails to defend $1.38, the imbalance in favor of bullish bets could amplify selling pressure through forced liquidations, accelerating the decline toward lower support levels.
This article is for informational purposes only and does not constitute investment advice.
