LAB Token Plunges 23%: Can Bulls Hold the Critical $13 Support Level?

The LAB token has taken a significant hit, shedding more than 23% of its value within a single 24-hour window amid relentless selling pressure that continues to weigh on market sentiment. To make matters worse, trading volume simultaneously contracted by 35.01%, settling at $32.2 million — a sign that market participation dropped off sharply even as prices continued their downward trajectory. At the time of reporting, LAB was changing hands around $13.53, dragging its total market capitalization down to $4.22 billion.

The latest leg of the decline followed LAB's failure to maintain upward momentum within an ascending price channel that had previously offered some structural optimism for traders.

**Accumulation Signals Persist Despite the Sell-Off**

Interestingly, on-chain data tells a somewhat contradictory story. Despite the aggressive price decline, spot exchange activity has continued to reflect accumulation behavior rather than mass distribution. According to CoinGlass, negative spot netflows reached $420,210 on June 29th, indicating that more LAB tokens were being withdrawn from exchanges than deposited. This pattern typically signals that holders prefer moving their assets into private wallets rather than positioning for immediate liquidation.

That said, the relatively small size of these outflows has not been enough to counteract the bearish sentiment gripping the broader market. Buyers have displayed limited urgency, and even with reduced sell-side supply on exchanges, weak demand has allowed sellers to maintain control over price direction.

**Technical Structure Under Serious Threat**

From a charting perspective, LAB is now pressing against the lower boundary of its ascending channel following a sequence of bearish candles that erased much of the prior recovery. The $13 zone represents the channel's baseline, and a confirmed breakdown below this level would open the door to the next significant demand area around $12 — a price region where buyers previously mounted a defense.

Technical indicators are firmly aligned with sellers at this stage. The MACD line has crossed beneath its signal line, and the histogram has turned negative, reflecting a clear deterioration in bullish momentum. The Parabolic SAR is also sitting above the current price, reinforcing the ongoing downtrend. However, the ascending channel technically remains intact for now, giving bulls one last opportunity to stage a meaningful defense.

The asset's inability to push into the upper half of the channel during recent sessions further underscores how difficult it has been for buyers to gain traction at elevated price levels.

**Short Sellers Are Paying to Stay — and That Could Backfire**

Futures market data adds another dimension to the story. LAB's OI-Weighted Funding Rate sits at -0.2773%, meaning short traders are actively paying premiums to hold their bearish positions open. This level of commitment from the short side signals strong conviction among bears, but it also raises a red flag: when funding becomes deeply negative and positioning turns overwhelmingly one-sided, the market becomes vulnerable to a short squeeze.

Should buyers manage to reclaim support at the channel's lower boundary and trigger a bounce, an overcrowded short trade could unravel rapidly, forcing bears to cover and amplifying any upside move.

**What Happens Next for LAB?**

LAB sits at a crossroads. The technical setup, derivatives data, and price momentum all lean bearish, yet the ascending channel remains technically unbroken, and negative exchange netflows suggest long-term holders are not rushing for the exits. If bulls can step up and defend the $13 region convincingly, a stabilization phase could follow before any recovery attempt.

However, should the channel break to the downside, the $12 demand zone becomes the next logical destination and a key test of how much conviction remains among longer-term buyers. The coming sessions will be critical in determining whether this is a temporary shakeout or the beginning of a deeper correction.