By Lighter (LIT) has seen a remarkable surge in its price over the past 24 hours.
The LIT token has risen by approximately 13%, significantly outperforming the broader crypto market, which gained just 1.63%.
This rally comes amid several bullish catalysts, with the treasury buyback program at the centre.
Buyback program sparks investor optimism
On January 6, 2026, Lighter confirmed the launch of its token buyback program.
The protocol will channel all fees from its decentralised exchange (DEX) and future services into on-chain LIT repurchases.
The treasury currently holds $1.35 million in USDC for immediate market purchases.
By reducing the circulating supply, the buyback program ties token demand directly to protocol usage, creating sustained buying pressure.
Projections indicate that up to 30 million LIT, around 3% of the total supply, could be repurchased.
Market participants are closely monitoring the on-chain treasury activity to track the pace of buyback execution.
The program has immediately boosted investor confidence, signalling that the protocol is committed to long-term value creation.
Whale activity and technical breakout strengthen momentum
The Lighter price rally has been further fueled by whale accumulation.
A large trader sold 52.1 WBTC (approximately $4.86 million) to buy 1,119,001 LIT at $3.00 on January 5, 2026.
A whale sold 52.1 $WBTC ($4.86M), deposited $3.36M $USDC into #Lighter, and bought 1,119,001 $LIT at a price of $3. app.lighter.xyz/explorer/accou…
This move absorbed selling pressure and encouraged retail investors to enter the market.
As a result, the cryptocurrency’s trading volume has surged 78% to around $155 million, according to Coingecko, reflecting growing interest in LIT.
Lighter (LIT) price forecast
Lighter (LIT) continues to demonstrate how strategic tokenomics, combined with market participation, can drive strong short-term price performance.
From a technical analysis view, LIT has broken out of a consolidation range between $2.60 and $2.80 and climbed past $3.00.
At the time of writing, the token was trading at approximately $3.10.
Notably, as the price climbed, the Relative Strength Index (RSI) cooled from overbought levels of 70 to a healthier 60, indicating room for continued upside.
The pivot point at $2.92 now serves as strong support, which traders are watching closely.
These developments confirm a short-term bullish trend, reinforced by both fundamentals and market sentiment.
Looking ahead, Lighter (LIT) price momentum could continue if the buyback program sustains demand.
Maintaining above the $3.00 level is crucial for further upside.
A strong breakout could push LIT toward previous resistance levels around $3.18 to $3.60.
However, traders should remain cautious of profit-taking and potential retracement below $2.95, which could open the path to a further decline.
Overall, the combination of treasury buybacks, whale accumulation, and technical strength suggests that LIT is well-positioned for continued gains.
Traders and investors should monitor on-chain buyback activity and price support levels to gauge the sustainability of this rally.
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