LIT surged 18.3% over the past 24 hours to $3.11 as Lighter initiated its promised buyback program on Jan. 6. The move fulfilled commitments made during the token's launch in December, raising questions about whether momentum can be sustained.
What Happened: Buyback Program Launches
The Lighter team announced the buyback program through social media, sharing a direct link to its treasury wallet. The disclosed treasury account held approximately 180,733 LIT, valued at $564,609 at the time of the announcement.
The action aligns with statements made on Dec. 30, when the team outlined its approach to token economics.
"Revenues from our core DEX product as well as future products and services can be tracked in real-time on chain and will be allocated between growth and buybacks depending on market conditions," the team stated.
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Why It Matters: Technical Indicators Support Rally
The Chaikin Money Flow indicator shows strengthening inflows during the latest rally, suggesting accumulation rather than speculation.
On Jan. 1, LIT formed a bearish divergence as price rose while outflows increased, leading to a pullback the following day.
Over the last 48 hours, conditions have shifted. Outflows have declined as prices continued higher, indicating improving accumulation and suggesting investors are backing the move rather than chasing momentum.
Downside risks persist if sentiment shifts. A return of selling pressure could push LIT back below $2.97, potentially sliding toward $2.77 and invalidating the current structure.
The Money Flow Index remains above the neutral threshold, signaling sustained buying pressure without reaching overbought territory at 80.0.
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