Decoding LAB’s 21% crash as early-investor claims begin
Why are early investors dumping their first claim of LAB tokens so hard?
LAB [LAB] is not beating the allegations raised by ZachXBT as its price continues to fall freely. In the past 24 hours, LAB crashed by more than 21% as selling pressure increased by 278%.
The decline has been fueled by the offloading from early investors alongside a weak market structure. Here is why the price of LAB continues to fall:
Is investor disappointment fueling the LAB price crash?
LAB announced that early investors were now eligible to sell their tokens from August 14, as the airdrop claim window went live. This distribution event has increased the circulating supply, which triggers immediate selling pressure.
However, there is a deeper story to the intense selling.
Early investors have seen their profits decline from almost $1 billion, that is, $977.35 million, to $6 million. The massive drop on profits occurred between July 4 and August 14.
To make it worse, no investor would receive the whole presale allocation before 2027. This trend indicates the profits might continue decreasing, creating disappointment.
Prior to this first airdrop claim, the team sent LAB tokens between 500K and 2.25 million to facilitate the event.
Additionally, broader altcoin market weakness, such as LayerZero [ZRO] and Aptos [APT], accelerated the nosedive. In fact, even the total crypto market declined by 1.1% over the past 24 hours.
Analyzing LAB’s breakdown
On the charts, the altcoin broke below a falling wedge pattern at $0.10, reinforcing the bearish control. The altcoin is down more than 99.67% from its peak level.
For instance, the CVD indicated that over 524K LAB had been sold on the MEXC exchange. The CMF fell sharply from the neutral level to -0.25, confirming capital flight.
As LAB trades around $0.08, it continues to lose major support levels while traders stack up leveraged orders. Will these orders define the next move for the altcoin?
LAB tightly trapped in between dense liquidity levels
On the liquidation map, LAB has more dense orders sitting below its current price than those above. The dense liquidation leverage sitting between $0.0828 and $0.0866 indicates more traders are inclined toward further drawdown.
A tap into $0.0828-$0.0866 could accelerate the breakdown if longs are liquidated. However, if tap activates long positions at this level, the altcoin may rebound.
On the other hand, thin clusters sit above price in two zones, that is, at $0.093-$0.10 and at $0.11. If these clusters are cleared, the bulls could at least recover from the crash by targeting $0.11, where the free fall started.
Final Summary
- LAB crashes 21% in the past 24 hours as early investors sell their first claim of presale tokens.
- LAB’s price broke below a falling wedge pattern, extending its downtrend.
