LAB's 34% Wipeout Leaves Bulls Hanging by a $7.65 Thread 🧵

LAB recorded one of its sharpest daily declines on June 29 as excessive leverage unwound and tokenomics concerns weighed on sentiment. The token traded at $9.00 at the time of writing, down 34% over the past 24 hours, with market capitalization falling to $3.88 billion. Daily volume climbed 121% to approximately $58.71 million, showing that participation increased during the decline. Reports highlighting upcoming token unlocks and concerns over concentrated token ownership added further pressure, prompting participants to reassess valuation. Leveraged positions closed rapidly, while heightened uncertainty encouraged additional selling across both spot and derivatives markets.

Earlier in the session, LAB had extended losses after dropping more than 23% over the prior 24 hours, reflecting persistent selling pressure. Trading volume had declined by 35.01% to $32.2 million, and the asset traded around $13.53 with a market capitalization of $4.22 billion before the deeper sell-off. CoinGlass data showed $420.21K in negative spot netflows on June 29, indicating more LAB left exchanges than entered them, a pattern suggesting holders preferred private wallets over immediate sale. That modest outflow failed to offset the broader bearish sentiment dominating the market.

Derivatives activity reflected a broad reduction in speculative exposure rather than fresh risk-taking. At press time, Open Interest fell 23.01% to $130.39 million, indicating that traders closed positions instead of adding new leverage. The contraction suggested that long positions absorbed most of the selling pressure as the market reacted to deteriorating sentiment. The absence of rising OI alongside heavy volume showed that new buyers had not stepped in aggressively; instead, capital exited leveraged positions while participants reduced exposure amid growing uncertainty. The OI-Weighted Funding Rate remained below zero throughout the decline, standing at approximately -0.1768%, showing that short sellers continued paying to maintain their positions. Persistent negative funding reflected sustained bearish conviction despite the sharp correction.

LAB approached the $7.65 support level after a sharp rejection from the $20 resistance area, leaving sellers firmly in control of the broader trend. Price closed near $9.04, placing the token only a short distance above this key demand level. The MACD remained bearish as the MACD line stayed below the signal line, and the histogram continued expanding deeper into negative territory, confirming that downside pressure had strengthened throughout the decline. A decisive loss of $7.65 would expose the next major support near $4.00, where buyers previously emerged. If buyers defend the current zone successfully, LAB could attempt a relief rebound toward $7.65 before challenging higher resistance levels, although confirmation would still require improving technical strength.