Lighter (LIT) forms head-and-shoulders; breach of $2.56 could open path to $2.30

Beincrypto reports that Lighter (LIT) has formed a head-and-shoulders pattern after an initial post-launch rally, raising the risk of a pullback.

The token had broken out of an inverse head-and-shoulders and rallied nearly 21% to about $3.26, but price action has since slowed and, on the 4‑hour chart since January 5, now resembles a head-and-shoulders. The neckline sits near $2.56; a slip below that level would activate the pattern and open the door to an 11% pattern target, though that requires a roughly 15% fall from the current price near $3.01. Chaikin Money Flow has rolled over (still slightly above zero) and the Money Flow Index dropped sharply between January 6 and January 9, signaling weakening inflows and dip buying, while top-100 addresses showed no aggressive accumulation over the past 24 hours.

Perpetual futures positioning is net short across cohorts and the net long cohort has fallen by over 8%, adding to the bearish bias. Key levels to watch: holding above $2.97 would protect the right shoulder, a move below $2.78 would place the structure under pressure, and a drop under $2.56 would likely target the $2.30 lost launch low. A decisive 4‑hour close above $3.26 would invalidate the bearish setup and signal renewed upside, but without fresh inflows and stronger dip buying a controlled cooldown appears a real risk.

Key Topics

Crypto, Lit Token, Chaikin Money Flow, Money Flow Index, Perpetual Futures, Nansen