Lighter crypto pumps 15%: Will LIT’s rally extend as fees surge 30%?

Lighter [LIT], the native token of the perpetual decentralized exchange (DEX), rallied over 15% in the past 48 hours. 

The latest pump lifted the token from below $3.50 to over $3.94. This raised hopes that $5 could be the next target if $4 is cleared. However, the token has struggled to crack above $4 despite an 110% explosive run in August.  

Ahead of the Fed rate decision on the 15th of September, the altcoin could extend its sideways structure below $4 despite strong traction on the DEX. 

Will Lighter crypto stay below $4, or eye $5?

On the daily charts, the token has toiled below $4 since late August. Unsurprisingly, August’s mega rally was due for some cool-off as the Relative Strength Index (RSI) hit overbought territory. 

The ATR (Average True Range, red) has gone flat and begun trending downwards, indicating that the volatility seen in August has eased and tapered. Unless the metric shoots up with strong trading volume, any breakout above $4 could become a “fakeout.”

The sideways thesis could be invalidated if the broader crypto market extends its recovery. In such a scenario, LIT could clear the $4 overhead hurdle and eye $4.50 or $5.1. 

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