Lighter (LIT) drops 16% after SEC delays tokenized stock trading, correcting recent gains.

Lighter (LIT), a top-performing altcoin this week, fell about 16% in the last 24 hours following the SEC's decision to delay trading of tokenized stocks. This regulatory setback caused a drop in interest and open interest across exchanges, with whales selling more heavily than retail investors recently. LIT broke below a key support level at $1.25 and is now trading in a consolidation range, with technical indicators showing bearish momentum. However, the altcoin remains 30% up for the week, and a bounce could occur at lower Fibonacci retracement levels unless it falls below $0.80, which would invalidate the bullish outlook.