LAB (LAB) plunged more than 36% in the past 24 hours as token unlocks, insider transfers, and exchange activity intensified selling pressure on the token. The sharp drop added weight to concerns raised by on-chain investigator ZachXBT, who repeatedly questioned the legitimacy of the project.
Despite the liquidation, LAB continues to hold a significant portion of market liquidity, allowing it to remain listed on major exchanges.
On-chain data has highlighted three key factors behind the collapse of the token, which has now erased around 99% of its value from its all-time high (ATH).
Why is the price of LAB falling so much?
July 14 marked LAB’s first planned major release for investors, although reports differ on the exact amount released. This uncertainty adds to concerns over the transparency of the project, one of the issues previously highlighted by ZachXBT.
Acquisition data showed that approximately 31.48 million LAB entered linear unlocks that day. The additional supply increased the risk of further selling pressure.
This unlock was only part of the story.
Arkham data also showed insiders moving large amounts of LAB to exchanges. One wallet transferred over 40 million LAB to Bitget. The same wallet was also seen moving SKYAI tokens.
In addition to this, ZachXBT reported that another insider deposited 18.4 million LAB into Aster DEX (ASTER) over the previous two days. The address still held an additional 81.5 million LAB after the transfers, leaving traders worried about additional supply entering the market.
Exchange wallets added another layer of selling pressure.
KuCoin transferred 11 million LAB from its vault wallet in three transactions. Two transfers each involved four million tokens, while the third moved three million.
Interestingly, the last three million LAB were transferred to an external wallet instead of another KuCoin address. This suggested that not all transfers immediately represented an exchange distribution.
At the same time, derivatives added further downward pressure.
New sell walls formed above the current price, consistently exceeding buy orders. The largest liquidity groups appeared around $0.58 and between $0.32 and $0.33.
This combination of token unlocking, insider activity, exchange transfers, and derivatives positioning led to the sharp decline in LAB. This also made traders wonder if the token could stabilize.
LAB Price Projections Amid 99% Crash
LAB fell another 36% in the last 24 hours and remained under heavy pressure.
Chaikin Money Flow (CMF) fell sharply throughout July, reinforcing signs of sustained capital outflows.
At the same time, Open Interest climbed to around $60 million even as the price fell. This divergence suggests that new positions continue to enter the market despite the liquidation, thereby increasing the likelihood of speculative short activity.
Nevertheless, LAB’s prospects still depend on liquidity.
If buying demand continues to weaken as new supply enters the market, downward pressure could persist. A sustainable recovery would likely require greater liquidity and renewed market confidence.
Final summary
- LAB crashed more than 36% in 24 hours, extending its decline to around 99% from its all-time high, as investor unlocks, insider transfers and swap activity fueled selling pressure.
- LAB has been trading below key support levels. Unless new liquidity returns, the token could remain under sustained selling pressure.
