LAB extended its decline after losing more than 23% of its value over the past 24 hours, reflecting persistent selling pressure across the market. Trading volume also declined by 35.01% to $32.2 million, showing that participation cooled even as the token registered another sharp decline.
The asset traded around $13.53 at the time of writing, leaving its market capitalization at $4.22 billion after another wave of losses. However, the decline arrived after LAB failed to sustain its earlier recovery within an ascending channel.
Why are traders still accumulating LAB?
Spot exchange activity continued reflecting accumulation rather than aggressive distribution despite the ongoing price decline.
CoinGlass data showed another $420.21K in negative spot netflows on the 29th of June, meaning more LAB left exchanges than entered them. That trend suggested holders still preferred moving tokens into private wallets instead of preparing them for immediate sale.
However, the relatively modest outflow failed to offset the broader bearish sentiment dominating the market. Buyers showed limited urgency despite declining exchange balances, leaving sellers with enough control to push prices lower.
As a result, exchange flows continued supporting reduced sell-side supply, yet price action remained largely dictated by weak demand across the broader market.
LAB edges closer to losing channel support
LAB approached the lower boundary of its ascending channel after several consecutive bearish candles erased much of the previous recovery. Price slipped toward the channel’s baseline near the $13 level, placing the entire structure under pressure.
A confirmed move below that trendline would expose the next major demand zone around $12, where buyers previously stepped in. Technical indicators continued favoring sellers as LAB weakened near channel support.
At press time, the MACD line crossed below the signal line while the histogram turned negative, showing that bullish strength had faded during the latest pullback. In addition, the Parabolic SAR remained above price, reinforcing the prevailing bearish trend after flipping earlier in the decline.
However, the channel remained technically intact during the latest session, leaving bulls with one final opportunity to defend the structure. The rejection from the upper half of the channel also showed that buyers struggled to sustain higher prices. Unless demand returns quickly, sellers could force a decisive break below the pattern.
Why are short traders paying to stay?
Derivatives positioning continued to reflect bearish conviction across the futures market.
At the time of writing, LAB’s OI-Weighted Funding Rate stayed negative at -0.2773%, showing that short traders continued paying premiums to maintain their positions. That reading highlighted sustained confidence among bearish participants despite the extended decline.
However, deeply negative funding also suggested the market had become increasingly one-sided. If buyers reclaim channel support and force a rebound, overly crowded short positions could face pressure from a rapid squeeze.
For now, though, derivatives data continue supporting the prevailing bearish outlook as traders maintain defensive positioning against further downside.
Can LAB avoid a breakdown?
LAB remained under considerable pressure after losing more than 23% while technical indicators and derivatives positioning favored sellers.
However, the ascending channel had not broken down yet, and negative exchange netflows continued showing that holders still removed tokens from exchanges.
If buyers defend the lower channel boundary, LAB could stabilize before attempting another recovery. Otherwise, a confirmed break below support would likely expose the $12 demand zone as the next major downside target.
Final Summary
- LAB remained under heavy selling pressure as bearish technical signals continued dominating market sentiment.
- Negative exchange netflows contrasted with falling prices, while the $12 zone emerged as the next key test.
