LAB (LAB) price rose by double digits over the past 24 hours, recording gains of over 16%.
The rally comes after weeks of scrutiny following a call from crypto investigator ZachXBT for an alleged scam. ZachXBT noted irregularities in the token’s supply dynamics, but this appears to have calmed down.
The price of LAB teases the breakout but falls back
The rally came after the altcoin broke out of a sideways consolidation that had lasted 14 days. Prior to this consolidation, LAB had reached an all-time high (ATH) of $7.77.
While the two-week price range denotes accumulation, these traders were doing so in a premium zone. According to the Fibonacci retracement tool, LAB was trading above the 50% level, but its price had fallen below this level several times.
The Stochastic Momentum Index (SMI) was still trading above the neutral level while the MACD bars indicated the strength of the buyers.
However, LAB struggled to stay above this breakout. The price is slowly moving back into the range, even as the bulls fight to keep it above $4.87.
Positive flows from futures vs. mixed flows from Spot
In the futures market, CoinGlass data shows that inflows have outpaced outflows. In the last 24 hours alone, derivatives traders have pumped in over $8.46 million.
The 14-day price accumulation was evident on the Entries/Exits chart. The largest single-day accumulation was worth over $114 million on May 2.
In total, over the two weeks, more than $633 million in capital was raised.
Mixed activity characterized the spot market. According to Arkham, LAB tokens were leaving exchanges, signaling accumulation, and at the same time some were arriving on trading platforms.
For example, one wallet withdrew thousands of LAB from Gate while almost equal tokens were deposited on the KuCoin and AsterDEX exchanges.
Spot activity showed no clear direction, but the futures market was downright bullish.
LAB stuck between liquidity clusters
Notably, LAB destroyed short orders, liquidating over $4 million in the last 24 hours. As a result, LAB reached a daily high of $5.82, with more clusters forming between $5.50 and $6.
As such, price is compressed between liquidity clusters as more orders form between $4 and $5.
A liquidity sweep across clusters on either side would amplify price movements in the direction of liquidity. In the case of short positions, LAB could reclaim its high of $7.77, while for long positions below $5, the price could drop to $4.
Final Summary
- LAB rose 16% in 24 hours following a price breakout and capital inflows from the futures market.
- Price was stuck between highly concentrated liquidity clusters, and a sweep on either cluster could define its next move.
