LAB Token Drops 34% to $9 as Leverage Unwinds and $7.65 Support Comes Into Focus

LAB token shed 34% of its value within 24 hours, falling to $9.00 and pulling its market capitalization down to $3.88 billion, as forced deleveraging and tokenomics concerns triggered a broad sell-off across both spot and derivatives markets.

Trading volume surged 121% to approximately $58.71 million during the decline, indicating that market participation intensified rather than dried up. The jump in volume, however, reflected position unwinding rather than fresh accumulation, as new buyers did not step in aggressively to absorb the selling pressure.

Reports circulating ahead of the move flagged upcoming token unlocks and concentrated token ownership as key risk factors. These concerns prompted market participants to reassess LAB's valuation and quickly reduce exposure, accelerating the liquidation of leveraged long positions across spot and derivatives venues.

Open Interest in LAB derivatives fell 23.01% to $130.39 million during the session, according to CoinGlass data. The contraction confirmed that traders chose to close existing positions rather than add new leverage, with long positions absorbing the bulk of selling pressure as sentiment deteriorated. The combination of elevated volume and shrinking OI reinforced that capital was exiting the market rather than rotating into new directional bets.

On the price chart, LAB closed near $9.04 following a sharp rejection from the $20.00 resistance area, leaving the token a narrow distance above the $7.65 support zone — now identified as the critical demand level. The MACD remained in bearish configuration at press time, with the MACD line holding below the signal line and the histogram continuing to expand deeper into negative territory, signaling that downside momentum strengthened throughout the decline.

A decisive break below $7.65 would expose the next significant support near $4.00, a level where buyers previously intervened. A successful defense of the current zone could allow LAB to attempt a relief bounce toward $7.65 and eventually challenge higher resistance levels, though any recovery scenario would require a meaningful improvement in technical conditions.

Funding rate data from CoinGlass added to the bearish picture. The OI-Weighted Funding Rate held below zero throughout the decline, printing at approximately -0.1768% at last check. Negative funding means short sellers were paying to hold their positions — an indication of sustained bearish conviction rather than a transient shift in sentiment.

The negative funding trend extended across multiple sessions and tracked closely with the drop in Open Interest, reinforcing a broader risk-off posture among derivatives participants. While the reading had not reached the extreme lows recorded earlier in June, it still showed that bearish positioning dominated the market. Funding would need to recover into positive territory before sellers lose their structural advantage.

In summary, LAB faces a confluence of technical and structural pressures: a sharp rejection from key resistance, collapsing leverage, elevated volume driven by exits, and persistently negative funding. The $7.65 level now serves as the immediate line in the sand — a confirmed breakdown there would likely redirect focus to the $4.00 support, while a hold could lay the groundwork for a modest stabilization.