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Sun shifts $5.4M from spot to perps, selling $LIT cautiously, hinting at risk management rather than full exit.
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$LIT lost $2.63 support; bulls must reclaim quickly or risk a deeper dip, says analyst Ardi.
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Polymarket shows 86% chance $LIT hits $2 and 68% for $1.5, reflecting crowd sentiment after post-airdrop shakeout.
Justin Sun, the high-profile crypto entrepreneur and founder of Tron has transferred his remaining $5.4 million from Lighter’s spot balance to perpetual contracts. He began selling portions of $LIT, prompting speculation on whether this is a strategic hedge or simple portfolio housekeeping.
Previously, Sun had deposited roughly $200 million into Lighter’s LLP. Of that, he withdrew around $38 million, using approximately $33 million to acquire 13.25 million $LIT tokens. About $5.5 million remained in spot balance, representing roughly 1.33% of total supply and 5.32% of circulating supply.
Besides, smaller recent moves saw Sun converting $5.2 million USDC through a single wallet to purchase 1.66 million $LIT, currently valued around $4.65 million, with $1.2 million still in spot. While this appears modest relative to Sun’s holdings, his wallets often act as a “market mood ring.”
Analysts are observing these movements closely, noting that with $162 million still in LLP and most of his $LIT stack untouched, Sun doesn’t need to liquidate significantly to sway sentiment. Hence, the market interprets this activity as a pause rather than a full exit.
Market Reactions and Technical Signals
Crypto analyst Ardi highlighted that $LIT lost its $2.63 local support, triggering a 5% sweep into a critical red zone. He warned bulls must reclaim this level quickly to avoid a deeper drop.
Additionally, 0xCryptoGirl referenced Polymarket data, which shows an 86% chance that $LIT touches $2 before 2027, with 68% odds for $1.5. She explained, “This is not a prediction, that’s a crowd-priced risk band for how deep the post-airdrop shakeout can get.”
Moreover, she compared this to previous successful launches like $HYPE, where weak hands were flushed out before price recovery. Observers are watching whether $2 holds while perps cool off, if absorption occurs, or if updates and incentives trigger rebounds. These signals may define whether $2 represents a quick sweep or a deeper range reset.
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