LAB rallies 40% amid capital rotation to BNB Chain – Is its correction over?

LAB seems to be withstanding the scrutiny over its ‘scam label’ that has slowed down its rally. In the past 24 hours, LAB went up by about 40%, with most of the BNB Chain tokens in the green.

Capital rotation, massive whale accumulation, and technical breakout appear to be the main drivers of the daily surge.

LAB accumulation returns as capital rotates to the BNB ecosystem

According to data from Arkham, a wallet received more than 10 million LAB tokens worth more than $96 million. The tokens were transferred from Bitget’s cold wallet.

Bitget has been one of the market maker forces behind the surge in multiple tokens, including Audiera [BEAT], RaveDAO [RAVE], and RIVER, among others. On-chain investigator ZachXBT has labeled them all as scam tokens.

However, when users move funds from an exchange to an individual wallet, they indicate accumulation, which is a bullish signal.

Additionally, massive capital is rotating into the BNB ecosystem. That is evident in Binance Alpha tokens, which are registering double-digit gains.

For instance, Humanity Protocol [H], SKYAI, and ChainOpera AI [COAI] were up 57%, 44%, and 21%, respectively, as of press time.

LAB attracted the most visits among all these tokens, commanding a daily trading volume of more than $50 million. The volume had surged by about 45% even though liquidity was not high.

The community sentiment had also jumped to 66% bullish after a period of bearish price action and a loss of confidence in the project, following the crash of similar projects like RAVE.

LAB price breaks above descending resistance

On the 4-hour chart, LAB’s price was breaking above a slanting trendline resistance. This was an initial signal to shift a market structure in the short term after a 90% correction.

LAB is currently trading slightly above the 0.786 Fibonacci Retracement level, a key bounce zone in healthy trends.

The Advance Decline Ratio was rising with the reading at 2.62, the highest level since the 20th of May. This indicates the market breadth is wide and the trend is getting stronger.

Still, as LAB trades around $7.20, the altcoin remains more than 64% below its all-time high of $27. In fact, the Choppiness Index (CHOP) is up, indicating the breakout is yet to become explosive.

However, CHOP is starting to decline, suggesting the indicator is pricing in the potential breakout.

Basically, LAB price is shifting the near-term outlook, but it needs to hold above the trendline. Major hurdles for further price appreciation are at the $12-$14, $18, and $22 zones.

Conversely, if LAB fails to hold above the trendline, the breakout may be invalidated.

Final Summary

• LAB surges 40% amid the return of accumulation, capital rotation to BNB Chain, and volume spike. 
• Price broke out of a slanting trendline resistance after a 90% retracement.