LAB surged 13.16% over the past 24 hours, trading at $19.25 despite experiencing a significant decline in market participation. According to AMBCrypto, daily trading volume fell by 59.62% to approximately $347 million, showing that participation weakened despite the price advancing toward the $19 region. The token's recent performance demonstrates resilience as buyers maintained control through heavy short liquidations, with the price approaching the upper boundary of the current trading range.
Derivatives traders experienced another painful session as short liquidations continued dominating across major exchanges, with total short liquidations reaching approximately $54.87K while long liquidations remained limited to only $1.15K. AMBCrypto reports that Binance accounted for the largest share of bearish losses at about $26.99K, followed by OKX with roughly $9.61K and Bybit with nearly $7.65K. The imbalance indicates that bearish traders repeatedly closed positions as LAB advanced, reinforcing the recent rally despite softer Spot market participation.
LAB successfully retested the key support zone around $18 before attracting fresh buying interest that pushed the price back above $19. The rising trendline remained intact throughout the recovery, confirming buyers consistently defended higher lows after the earlier correction. According to AMBCrypto, MACD strengthened further as the MACD line climbed above the signal line while green histogram bars continued expanding, reflecting improving bullish strength after the recent crossover. The price approached the upper boundary of the current trading range, with resistance remaining positioned near $17.06 and potential for a challenge toward the psychological $20 area before attempting another advance toward the major $30 resistance.
Tokenomics concerns intensified after on-chain researcher ZachXBT alleged that opaque OTC deals, unilateral vesting changes, and private loan arrangements contributed to LAB's rapid rise. According to AMBCrypto reports, around the same period, Arkham highlighted claims that a single entity could control a substantial portion of the token supply. Market participants pointed to ongoing daily unlocks of roughly 0.05% of supply through June, with larger unlock schedules remaining ahead. Current projections indicate that an additional 0.19% of supply worth approximately $16.98 million is scheduled between July 15 and October 13, followed by another 0.18% tranche worth around $16.51 million extending into 2028.
The rally raises questions about whether bulls can sustain momentum toward the $30 mark, as low trading activity may limit the strength of the recovery. As reported by AMBCrypto, if LAB preserves support above $18 and participation improves, the rally could extend toward the $30 resistance. However, losing that support would likely weaken the current recovery and encourage another corrective phase. The combination of heavy short liquidations and technical indicators favoring buyers suggests potential for continued upward movement, though the low volume environment may constrain the strength of any sustained advance.
