Whale Address Deposits 3.36 Million USDC to Buy 1.119 Million LIT on Lighter

A whale address has recently deposited 3.36 million USDC into the Lighter platform to purchase 1.119 million LIT tokens. This acquisition brings the whale's total LIT holdings to 33.84 million across two wallets. The average purchase price for the whale over the past five days has been approximately $2.37.

The whale's continued investment in LIT comes amid broader market volatility and price corrections. The token has seen a decline of around 40% since its launch 10 days ago and is currently trading below the 50-period exponential moving average. The relative strength index (RSI) is at 41, signaling a cautious market mood.

This whale activity is one of several large purchases in recent weeks. A separate whale deposited $2 million USDC into Lighter over the past two days, bringing its total LIT holdings to 2.45 million at an average price of $2.46. These movements have drawn attention from on-chain analysts and market observers.

Why Did This Happen?

Whale movements often signal potential market sentiment shifts. In this case, the whale is likely building a larger position in anticipation of a future bull run in LIT. On-chain data suggests the whale is acquiring tokens at a lower price point, averaging around $2.37, which could imply a belief in a near-term price rebound.

The whale's actions align with a broader trend of institutional and large-scale investors participating in early-stage crypto projects. Lighter's recent $675 million airdrop also saw significant adoption, with 75% of recipients still holding their tokens as of January 5.

How Did Markets React?

LIT's price has been volatile since its launch, dropping to $2.30 in early January from a high of $4.04 on December 30, 2025. However, the token has seen a recent 8.36% gain over the past 24 hours, trading at $2.69.

Market analysts are monitoring key support and resistance levels. The current support is around $2.50, and a test of the $2.85 resistance level is expected. A break above that threshold could signal growing momentum, while a failure to hold the support level could trigger further declines.

On-chain activity remains mixed. Lighter's daily trading fees have dropped by 90% in December, from $1.39 million to $139,000, raising questions about the platform's ability to maintain user activity beyond the initial airdrop-driven hype.

What Are Analysts Watching Next?

Analysts are focusing on several key factors. First, the whale's continued accumulation could indicate confidence in LIT's future. However, it is not a guarantee of price recovery. Analysts caution that broader market sentiment and liquidity conditions will play a significant role.

Second, Lighter's ability to sustain trading volume and user retention will be critical. The platform's market capitalization has grown to $678 million, but long-term success will depend on adoption and infrastructure improvements according to recent reports.

Third, the token's performance on major exchanges could influence its trajectory. Lighter has hinted at a potential listing on Coinbase, which could attract more retail and institutional demand.

Overall, the market remains cautious but watchful. While whale activity has brought a new narrative to LIT, the token must prove its long-term viability through sustained adoption and performance.