LIT: Correction in Progress

LIT is currently going through a correction, but the price action is beginning to show some interesting signs.
The recent candles are becoming more constructive, and the way price is reacting around the current area suggests that sellers may be losing some of their short-term control.
I'm not looking for a prediction here.
I'm watching the price action and candlestick behavior to see whether buyers can gradually regain control.

Market Phase: Correction
Current Bias: Watching for bullish confirmation
Key Area: Current correction / support zone
Confirmation: Bullish price action + strong candle reaction
Invalidation: Loss of the marked support structure

If price continues to consolidate while selling pressure decreases, this could become the preparation phase for another move higher.
But if the market breaks the current support, the bullish scenario loses its technical strength.

LIT is transitioning from Litentry to Heima (HEI), with the project shifting its focus toward chain abstraction, cross-chain infrastructure and interoperability. The official project describes its broader vision around decentralized identity, privacy, chain abstraction, bridge infrastructure and cross-chain applications.
One of the positive aspects is that the project is trying to move beyond its original identity-focused narrative and build infrastructure that can make interaction between different blockchains easier.
However, there is an important warning here.
The tokenomics transition means the circulating supply is expected to increase over time. The project has stated that the HEI supply will move from roughly 66.45M circulating tokens toward 100M over 20 months, with the migration taking place at a 1:1 ratio.
That potential increase in circulating supply is something investors should not ignore.

There is also execution risk: the success of the Heima transition ultimately depends on whether the new chain-abstraction products attract real users, developers and liquidity.
So fundamentally, I see an interesting technological direction — but the transition itself creates additional uncertainty.

For now, I'm more interested in how LIT behaves during this correction than in predicting the next target.
If price action continues to improve and buyers confirm the structure, the setup becomes more interesting.
If support fails, we step aside.
A correction is not automatically an opportunity.
The opportunity appears when the correction starts showing signs of exhaustion.