LAB tanked 13% in a single day. The selling was relentless, with volume exploding 335% to roughly $50 million and the volume-to-market cap ratio hitting 81%, a clear signal of panic liquidations and speculative unraveling.
The immediate trigger was technical. Since mid-July, LAB had been ping-ponging between $0.1264 and $0.1726, but the breakdown at the midpoint of that range, around $0.15, opened the floodgates. Traders piled into shorts as open interest climbed past $124 million while the price fell, a textbook sign of capitulation. The Cumulative Volume Delta showed 2.61 million tokens hitting the $0.1270 support level as sellers controlled the order book.
Exchange supply flooding and collapsing fundamentals
The on-chain picture told a grimmer story. KuCoin began offloading LAB from hot wallets to Bitget and Gate, a move that typically precedes further selling pressure. Token supply was shifting hands, moving out of vesting contracts and into exchange cold storage, a redistribution that screamed institutional exit rather than organic trading. But the real nail in the coffin was the protocol itself. Daily revenue had cratered from $191K last September down to just $6.20K, a 97% collapse that stripped away any fundamental support for the price.
Long liquidations hit $513K against a mere $44K in shorts getting wiped, suggesting retail buyers who thought they were catching a falling knife got trapped instead. Yet the Long/Short ratio on Binance stood at 3.50, climbing to 3.72 among top traders, hinting that some were actually stepping into the dip. On OKX the ratio was even higher at 10, signaling bulls hadn't completely surrendered. If support at $0.12 holds and volume starts shifting, a bounce back toward the $0.15 midpoint is possible. Without it, the next leg down becomes inevitable.
This article is informational only and should not be construed as financial advice. Crypto assets remain highly volatile and speculative.
