Lighter [LIT] has been consolidating within a range for the past six weeks. Even though whales and retailers continue to build their positions, LIT was down 6% in the past 24 hours as of writing.
Moreover, the supply zone at $2.70 remains a key barrier, capping any breakout attempts from this consolidation.
Whales building LIT positions
As per Arkham, an Ethereum OG wallet with a $65 million portfolio has resumed LIT accumulation after days of silence. The whale has been buying thousands of the tokens in exchange for USDS in Cow Protocol.
The whale’s total accumulated tokens have reached 4.277 million LIT, worth about $10 million, up from 1.70 million tokens last month. This position grew by 8% in the past 24 hours after the latest purchase.
Notably, the whale’s stablecoin reserves include $49.95 million in USDS, suggesting the whale was buying into strength.
Apart from the whale positioning, the Lighter team was also moving tokens, potentially for liquidity or distribution. According to Onchain Lens, their wallet sent 1.87 million LIT, worth $4.57 million, to a fresh wallet. Since the transfer was an internal move, it did not pose much selling pressure at the time.
Additionally, holder growth reinforced retail accumulation. As per Token Terminal, holders grew from 177 to 6.50K, a 36x jump year-to-date (YTD).
Despite the positioning, why was the price not advancing?
Bulls face a KEY test at the $2.70 supply zone
The altcoin was bouncing between $2 and $2.70, with the premium zone sitting above $2.30, while the discount area was below. Notably, the bears at the $2.30-$2.70 supply zone have kept LIT in the discount area for a month.
Every time the altcoin has bounced above $2.30, it has faced rejection. At press time, the Money Flow Index (MFI) has declined to 43 from 74, while the MACD was in red, indicating that bears are in control.
However, with the rising positions, bulls could clear the supply zone and expose higher levels past $3. But to increase these odds, consolidation needs to occur more in the premium zone rather than the discounted area.
Still, the altcoin remains 43% below its all-time high of $4.04.
Final Summary
- Ethereum OG has pushed his position to $10 million LIT in just one month while the Lighter team made an internal transfer.
- Lighter price was facing a test at the 2.30-2.70 supply zone, but the rising LIT position could help clear the path.