According to reports from AMBCrypto, LAB faces significant headwinds from 1.87 million tokens worth over ₹355K being unlocked daily until 2028. This continuous supply pressure explains why the altcoin is losing its acquired gains so easily, making it challenging for LAB to sustain any meaningful rally. The token unlocks represent a structural challenge that cannot be addressed through short-term market movements or technical breakouts.
As reported by AMBCrypto, LAB surged 47% in a day with trading volume increasing 60% and a 65% Volume-to-Market-Cap Ratio showing unusually high market turnover. The hourly chart showed the altcoin broke out from a descending triangle pattern and surged to a daily peak of $0.2026. However, technical indicators point to potential sustainability issues, with the Open Interest reaching ₹129 million amid sharper downtrends in Cumulative Volume Delta from -14.411 million to -168.963 million over the past two weeks.
According to AMBCrypto analysis, the breakout was driven by derivative traders with 20x leverage orders dominating the market. Cumulative long liquidation leverage reached ₹2.43 million while shorts amounted to ₹1.53 million, indicating that leveraged longs contributed to pushing the price higher. Even Open Interest-Weighted Funding Rates were green, showing bulls paying a premium to keep long positions open, though this evidence suggests the breakout was derivative-driven rather than fundamental demand.
As reported by AMBCrypto, the most significant improvement for LAB would come if the team could restore the token's legitimacy among the crypto community. While a broader crypto market recovery would help the token, the most substantial impact would require addressing the fundamental supply-demand imbalance created by the daily token unlocks. The altcoin needs fresh demand to absorb the daily supply and sustain any meaningful price recovery beyond short-term technical breakouts.
