Lighter faced persistent bearish pressure after failing to hold above $1.50. Since then, the altcoin traded inside a descending channel and touched $1.07.
At press time, Lighter [LIT] traded near $1.10, down 2.4% daily and extending weekly losses to roughly 23%.
Amid this pressure, the Lighter team attempted to counter selling momentum through a sustained token buyback program.
Lighter buybacks reach 3% supply
Lighter launched a token buyback program in early January and steadily repurchased LIT tokens from the open market.
Since then, the protocol bought back 7.48 million LIT tokens, worth about $12.67 million. In the most recent purchase, the team acquired 812,000 LIT for $1.06 million.
According to the team’s statement, the repurchased tokens represent around 3% of the circulating supply.
Notably, the protocol funds these buybacks using revenue generated across its products.
However, the network’s Revenue declined sharply in recent months.
Source: DeFiLlama
Daily Revenue previously reached peaks near $1.5 million, but recently fell closer to $100k–$120k levels.
Over the past day, Revenue stood near $122k, highlighting a sharp drop from earlier highs.
Even so, the team continued executing automated buybacks, signaling an ongoing commitment to stabilizing token demand.
Bearish sentiment still dominates the market
Despite the buyback efforts, market sentiment remained largely bearish. On Binance derivatives markets, sellers dominated activity through most of the past month.
On the 8th of March, LIT recorded roughly 1.7 million in Sell Volume versus 1.28 million in Buy Volume.
Over the same period, Net Buy Volume dropped to –3.5 million, reflecting persistent selling pressure.
Source: Coinalyze
Historically, sustained sell-side dominance often precedes further downside as bearish momentum builds.
Source: DeFiLlama
Perpetual markets also signaled reduced participation. The Volume remained above $1 billion, but declined noticeably in recent days.
Perps Volume fell from roughly $3.1 billion to $1.1 billion within three days, marking a decline of about 64%.
This drop suggested traders reduced exposure while waiting for a clearer market direction.
Is $1 support at risk?
Lighter continued showing downside momentum amid broader risk-off conditions across crypto markets. That environment encouraged holders to sell small rebounds, pushing LIT toward repeated lower lows.
Momentum indicators also reflected weakening bullish strength.
Source: TradingView
The Stochastic RSI formed a bearish crossover inside oversold territory and remained near the lower band. That structure indicated sustained seller control.
If selling pressure persists, LIT could break the $1 support and slide toward $0.96.
However, a recovery above $1.30 may shift momentum, where the Parabolic SAR currently sits.
Final Summary
- Lighter extended losses after failing to hold $1.50, trading near $1.10 within a persistent descending channel.
- The protocol bought back 7.48 million LIT tokens (~$12.67M) since January, equal to about 3% of the circulating supply.
