LIT Token Outlook: Bearish Pressure vs Buyback Support

Launch, Sell-Off, and Initial Price Action

LIT is the native token of the Lighter crypto exchange.

The token launched on December 30, 2025, and currently trades around USD 2.25. The launch was followed by massive selling, putting downward pressure on prices.

Massive Outflows and the Buyback Response

Experts noted that roughly USD 220 mn was withdrawn from the platform over a four-week period between December 2025 and January 2026, with the bulk of outflows occurring after the token’s airdrop.

Meanwhile, the project team rolled out a buyback program, which helped support the price action.

As a result, the token rallied to USD 3.00 in early January.

New Mobile App: Catalyst or Noise?

Earlier this week, a mobile application for spot and derivatives trading was launched to attract mass-market users.

However, the downtrend has resumed as bearish sentiment continues to dominate the market.

Bearish Overhang Dominates Market Structure

Therefore, two key factors currently affect the token’s price – persistent bearish pressure and distribution, on the one hand, and attempts to rebalance the market through the buyback and the trading app, on the other.

It remains to be seen which factor will ultimately prevail. In light of the recent price action, a bearish overhang still outweighs the positive news flow.

Key Technical Levels to Watch

From the TA standpoint, the support level tentatively lies near USD 2.02.

The bears have already breached this price point, which will now act as resistance in the event of a rebound.

Should the decline gain traction, the next downside target for the token could be USD 1.68.