Lighter's token LIT has fallen by about 16% in the past 24 hours, but is still up about 30% on a weekly basis. This means that the recent decline is more like a pullback after a rapid rise, rather than wiping out all the previous gains.

Sentiment weakens after SEC delays process

The report noted that market sentiment towards tokenized stock trading cooled significantly after the U.S. Securities and Exchange Commission (SEC) delayed the process. Previously, perpetual contract DEXs like Lighter had gained attention due to their ability to trade pre-IPO stocks, but this interest subsequently waned.

Open interest also declined. The article states that the combined open interest across centralized and decentralized platforms fell by more than 20%. Among major trading platforms, Binance had the highest LIT open interest at approximately $36.93 million, followed by Bybit at approximately $17.2 million.

Whales selling amplify short-term declines.

In addition to weakening sentiment, selling by large holding accounts exacerbated the decline. According to the Whale vs. Retail Delta indicator cited in the article, whale selling pressure exceeded that of retail investors in the past 24 hours, the opposite of the previous two days.

As of press time, the indicator had rebounded from approximately -0.11 to 0.054, indicating a shift in the dominant trading forces in the market. The report suggests this reflects profit-taking by both whales and retail investors, albeit on different scales.

During this process, LIT fell from its weekly high of $1.47 to $1.09, showing a significant short-term decline.

Prices have returned to the range.

Looking at the price action, LIT had previously broken through the horizontal resistance around $1.25, but subsequently fell back below that level, returning to the consolidation range that had lasted for over a month. The article states that LIT has broken below the 50% Fibonacci retracement level, indicating increased short-term selling pressure.

Meanwhile, net trading volume data also weakened. The article stated that the market saw net selling of over 8 million LIT tokens, with the Net Volume reading dropping from 5.35 million to -3.48 million, indicating increasing selling pressure.

However, the report also noted that the current price is close to levels where historical rebounds have occurred. If buying resumes, the price may find support in a lower Fibonacci range. The article further pointed out that if the price falls below $0.80, the aforementioned bullish structure will be further weakened.