The LIT token endured a wild trading session on August 5, 2026, as two separate flash crashes wiped out a significant portion of its value within minutes. The altcoin, which had been riding a massive intraday rally, suddenly buckled under intense selling pressure.
First Crash: 14.68% in 30 Minutes
At 07:08 UTC, LIT tumbled from $0.188699 to $0.160989, a decline of 14.68% in just half an hour. This move came despite the token still showing a 24-hour gain of 111.2% at the time. Earlier in the day, LIT had touched a high of $0.239087, while its market cap stood at $7,271,315 with a 24-hour volume of $414,873.
Second Crash: 12.06% in 5 Minutes
Later in the day, at 19:42 UTC, LIT suffered an even more abrupt drop, falling 12.06%—from $0.285899 to $0.251414—in a mere five minutes. By then, the 24-hour rally had swelled to 172.3%, and the day’s peak reached $0.304803. The token’s market cap had grown to $11,876,664 on volume of $1,009,272.
What Drove the Sell-Offs?
Analysts attributed the violent reversals to profit-taking after the staggering pump, likely amplified by leveraged positions being liquidated. The mixed signals from the broader crypto market added to the uncertainty, prompting rapid repositioning in smaller-cap altcoins like LIT.
Key Levels to Watch
Traders are now focused on the $0.125416 support—the day’s low—as a critical floor. A breakdown below that could accelerate declines. Conversely, recapturing the $0.304803 high would signal renewed bullish momentum. The extreme volatility serves as a reminder of the risks inherent in low-cap tokens during sentiment-driven swings.
