$LIT : CAPITULATION REBOUND OR ANOTHER LOWER HIGH?
LIT is around $3.42, up roughly 27% from its recent low near $2.70. The bounce has created higher lows at $3.15 and $3.20, with elevated green volume.
But the larger downtrend is still intact until price can close above the $3.65–$3.85 lower-high zone.
📍 Immediate resistance: $3.50–$3.65
📍 Trend resistance: $3.75–$3.85
📍 First support: $3.15–$3.20
📍 Major support: $3.05, then $2.70
✅ Future long setup #1: Pullback-and-hold
A dip into $3.15–$3.25 that holds, followed by a daily close back up, would preserve the higher-low structure.
Entry: on the successful hold/reclaim
Stop: below the retest low, ideally below $3.05
TP1: $3.60
TP2: $3.80–$4.00
Invalidation: daily close below the reclaimed support
✅ Future long setup #2: Breakout-and-retest
A daily close above $3.65, followed by a retest of $3.50–$3.65 that holds.
Entry: on the successful retest
Stop: below the reclaimed zone
TP1: $3.80
TP2: $4.00
Invalidation: daily close back below the reclaimed zone
❌ Why I’m not buying at $3.4236
With a $3.00 stop, the $3.60 target gives only about 0.42R, and even $4.00 gives about 1.4R. That fails a 1.5R minimum. The setup needs either a deeper pullback or a confirmed breakout.
⚠️ Risks
A 27% rebound can retrace quickly; half of the move is near $3.05.
Newer tokens can have unlock schedules and thinner liquidity—check both before sizing.
Do not place a blind limit at $3.20; wait for the level to hold.
Status: recovery watch
Would you wait for a $3.15–$3.25 retest, or wait for a close above $3.65?
#lighter #LIT #cryptotrading #SpotTrading
LIT is around $3.42, up roughly 27% from its recent low near $2.70. The bounce has created higher lows at $3.15 and $3.20, with elevated green volume.
But the larger downtrend is still intact until price can close above the $3.65–$3.85 lower-high zone.
📍 Immediate resistance: $3.50–$3.65
📍 Trend resistance: $3.75–$3.85
📍 First support: $3.15–$3.20
📍 Major support: $3.05, then $2.70
✅ Future long setup #1: Pullback-and-hold
A dip into $3.15–$3.25 that holds, followed by a daily close back up, would preserve the higher-low structure.
Entry: on the successful hold/reclaim
Stop: below the retest low, ideally below $3.05
TP1: $3.60
TP2: $3.80–$4.00
Invalidation: daily close below the reclaimed support
✅ Future long setup #2: Breakout-and-retest
A daily close above $3.65, followed by a retest of $3.50–$3.65 that holds.
Entry: on the successful retest
Stop: below the reclaimed zone
TP1: $3.80
TP2: $4.00
Invalidation: daily close back below the reclaimed zone
❌ Why I’m not buying at $3.4236
With a $3.00 stop, the $3.60 target gives only about 0.42R, and even $4.00 gives about 1.4R. That fails a 1.5R minimum. The setup needs either a deeper pullback or a confirmed breakout.
⚠️ Risks
A 27% rebound can retrace quickly; half of the move is near $3.05.
Newer tokens can have unlock schedules and thinner liquidity—check both before sizing.
Do not place a blind limit at $3.20; wait for the level to hold.
Status: recovery watch
Would you wait for a $3.15–$3.25 retest, or wait for a close above $3.65?
#lighter #LIT #cryptotrading #SpotTrading
