Karla Barker 
Lighter, a perpetual decentralized exchange protocol, saw its native token $LIT jump 11% over the past day as market sentiment turned bullish. The rally comes alongside two technical indicators pointing to further price gains, though the token still faces a stubborn resistance level that has blocked upward moves three times before.
Golden Cross and MFI Confirm Bullish Momentum
The rally follows a Golden Cross pattern on the Moving Average Convergence Divergence (MACD) chart. That’s when the MACD line crosses above the 9-day signal line, often a precursor to a strengthening trend. Growing histogram bars on the chart also suggest momentum is building.
At the same time, the Money Flow Index (MFI), which tracks capital inflows and outflows, rose to 56, placing it in bullish territory. Readings between 50 and 80 are considered positive. The MFI has dipped slightly from a recent high, which might indicate some profit-taking. Still, the overall reading supports a bullish outlook.
Resistance Above Price Has Turned Back LIT Three Times
Despite these positive signals, LIT is approaching an upper resistance level that has stopped its price on three separate occasions. Each time, the token retreated back into its consolidation channel between support and resistance. A clean break above this level with sustained momentum would be a major development. It could pave the way for a 34% rally toward $1.38, which is the top of the consolidation range.
TVL Drops $386 Million Since March
One on-chain metric that deserves attention is Total Value Locked (TVL), which measures assets deposited into Lighter’s smart contracts for trading and liquidity. TVL has fallen about $386 million since March 1, dropping to roughly $488 million according to DefiLlama. That means nearly as much capital has been withdrawn as remains locked. Declining TVL often signals reduced long-term commitment from users.
However, fees tell a more encouraging story. In the past 24 hours, protocol fees reached about $116,000, the highest since May 7. This suggests that despite capital leaving, traders are still active and completing more transactions, indicating user engagement is growing.