LAB cryptocurrency crashed by more than 13% in the past 24 hours, extending its previous day's downtrend according to reports from AMBCrypto. The decline was driven by high selling activity, with daily volume spiking by 335% to around $50 million. The volume-to-market cap ratio reached 81%, reinforcing extreme trading activity, massive liquidity, and heightened speculative interest in the altcoin.
The selling pressure was first induced by technical price rejection at the $0.15 level, which represents the mid-level of LAB's sideways trading range between $0.1264 and $0.1726 since mid-July. As reported by AMBCrypto, Open Interest (OI) was rising as the price fell, indicating traders were short selling the asset with OI standing at more than $124 million. The Cumulative Volume Delta (CVD) showed 2.61 million LAB tokens had been distributed as the altcoin tested the $0.1270 support level, reinforcing the high selling activity.
KuCoin was selling LAB tokens from their hot wallets, with thousands of LAB tokens moving from KuCoin to Bitget and Gate, as reported by AMBCrypto. The exchange distribution fueled the high selling volume, while supply distribution was settling with top holdings held in LAB's Gnosis Safe Proxy wallets, token vesting, Gate's cold wallet, and Binance's proxy wallet. The protocol had lost most of its revenue, with daily revenue collapsing from a high of $191K seen last September to around $6.20K.
Long liquidations have spiked with $513K wiped out against $44K in short orders, according to AMBCrypto reports. However, the Long/Short ratio stood at 3.50 on Binance and 10 on OKX, signaling that bulls were buying the dip. Top traders on Binance joined in, with the ratio climbing to 3.72, a sign of potential recovery. If bulls return, LAB might see a relief rally from the $0.1270 support level to at least the midpoint of the trading range, though the chances of recovery are fading by the day.
