Light (LIT) has risen by 3.68% in the last 24 hours with a daily trade gain of 13.52%. In the last week alone, the indicator rose by 18%.
In a recent report, AMBCrypto warned that the token could be overbought and could see a correction of $ 2. Now, in the following days, LIT fell by about 13% to reach $ 2.3. However, it rose to $2.60 once again.
In a post on X, Light revealed the burn of over 15.6 million LIT tokens, worth over $42 million. It represented about 6.3% of LIT around 250 million tokens and 1.5% of the total of 1 billion.
This massive burn on the 10th of July would have given the altcoin a short-term boost. In fact, the price level indicated that a move to $3 may not be far away.
Why light trees can be expanded
The 1 day chart showed a bearish divergence. The RSI moved lower as the price moved higher, a bearish divergence. Volumes were relatively high, but a strong bearish divergence warned of a price reversal.
Despite the differences, the demand for altcoins has been powerful.
Based on the upward movement from $0.83 to $2.76, Fibonacci retracement levels were prepared.
If LIT falls below $2.30, the 23.6% Fibonacci retracement level, fast traders and investors can wait for a deep retracement. Patience is needed until then.
Call to action for marketers – Play list
The 1 day chart warned of a reversal. The 4-hour chart showed a range of formations between the $2.31 and $2.68 patterns. No overruns have been breached so far after two attempts in July.
Traders can wait for a strong breakout past $2.70 to buy LIT, followed by $3.06 and $3.21. On the other hand, the damage below the $2.31 low, and the 23.6% Fibonacci retracement level during the 1-day period at $2.30, would indicate that a return below $2 was possible.
Brief Summary
- Lighter demand and bullishness continued to waver, despite signs of a strong bearish reversal.
- Traders may want to look at short-term patterns to determine how to move.
