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LAB plunged over 80% this week as profit-taking, token unlock fears, and weak liquidity triggered one of the sharpest sell-offs.
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LAB must reclaim $5.12 to stabilize sentiment, while losing $2.60 could confirm the capitulation phase is still unfolding.
The LAB price has witnessed one of the steepest declines in the crypto market this week, shedding more than 80% of its value after a spectacular rally just days earlier. The sharp reversal has caught traders off guard, triggering widespread speculation over whether the collapse marks a classic capitulation event or the result of deeper structural issues. With concerns surrounding token unlocks, selling pressure, and market dynamics, the focus now shifts to whether LAB has finally found a bottom or if the correction is far from over.
What Triggered LAB’s 80% Price Crash?
LAB’s dramatic decline appears to be the result of multiple bearish catalysts converging at the same time. After rallying more than 150% in a matter of days, the token quickly ran into aggressive profit-taking, wiping out over 80% of its value within the week. The sell-off was amplified by growing concerns over the project’s tokenomics.
Market participants have increasingly focused on the upcoming release of 27 million LAB tokens, valued at roughly $336 million at recent prices. The prospect of a significant increase in circulating supply fueled fears that early investors or large holders could add further selling pressure, prompting many traders to reduce their exposure ahead of the unlock.
Adding to the uncertainty, sections of the crypto community have questioned whether the decline was purely market-driven. Some traders pointed to the speed of the rally and subsequent collapse as signs of potential market manipulation or coordinated selling by large holders. While these claims remain unverified, they have contributed to the negative sentiment surrounding the token, leaving investors cautious about LAB’s near-term outlook.
LAB Price Analysis: Has the Selling Finally Exhausted?
The LAB price experienced a major correction after failing to hold the ascending trend line, which triggered a massive selling wave. Currently, the price is trading around $3.42, down more than 44% in the past 24 hours as bears remain firmly in control. The volume profile shows a heavy concentration of trading activity between $10 and $15, highlighting the traders extracting profit at the highs.
Besides, the RSI failed to break above the descending trend line and extended its series of lower highs and lows. This reflects the weakening of buying momentum and the absence of meaningful bullish divergence. The current chart pattern suggests the price range between $2.60 and $2.70 has emerged as a strong support zone, and hence a decisive breakout below could expose LAB to further downside. Meanwhile, a rise above the 0.236 FIB at $5.12 may only be considered as a sustained recovery that may push the price to the $10 high-volume node.
Capitulation or Manipulation—What’s the Verdict?
While the speed and magnitude of LAB’s collapse have fueled speculation of market manipulation, the available evidence points more toward a capitulation-driven sell-off amplified by structural weaknesses. Heavy profit-taking after the parabolic rally, combined with fears surrounding the upcoming token unlock and thin liquidity, created the perfect conditions for panic selling to take hold.
That said, the sharp reversal and concerns over concentrated token ownership mean questions around manipulation are unlikely to disappear anytime soon. For now, traders should focus less on the narrative and more on the LAB price action. Reclaiming the $5.12 level would be the first sign that buyers are regaining control, while a sustained move below $2.60could indicate that the capitulation phase is not yet complete.
