Lighter (LIT) Risks 15% Cooldown As Bearish Pattern Forms— Is Post-Launch Low Next?
Lighter (LIT) shows signs of a cooldown, forming a bearish head and shoulders pattern after a recent 21% rally, risking a drop toward its post-launch low.Summary
Lighter (LIT) experienced a sharp 21% rally after breaking out of an inverse head and shoulders pattern, reaching a high near $3.26, but momentum is now slowing.
On the 4-hour chart, a new head and shoulders pattern is forming, suggesting downside risk if the neckline at $2.56 fails. A breakdown below this level could trigger an 11% decline, requiring LIT to first fall about 15% from its current price near $3.01.
Technical indicators support this caution: Chaikin Money Flow (CMF) is weakening, indicating slowing capital inflows, and the Money Flow Index (MFI) shows weak dip buying. Furthermore, derivatives positioning leans net short. Key levels to watch are $2.97 for immediate support, $2.78 for increased pressure, and $2.56 for pattern activation, while a close above $3.26 would invalidate the bearish setup.
(Source：BeInCrypto)