$LAB Price Crashes 13% Amid Rejection and Revenue Collapse
The price of Lab [$LAB] plummeted by over 13% in the past 24 hours, extending its previous day's downtrend. This significant drop was driven by high selling activity, with daily volume spiking by 335% to around $50 million.
The volume-to-market cap ratio was at 81%, indicating extreme trading activity, massive liquidity, and heightened speculative interest. The selling pressure was induced by a technical price rejection, where Lab faced rejection at the key resistance level of $0.15.
Traders were short selling the asset, with Open Interest (OI) rising as the price fell. The OI stood at more than $124 million. Furthermore, the Cumulative Volume Delta (CVD) showed 2.61 million $LAB tokens had been distributed as the altcoin tested the $0.1270 support level.
KuCoin's selling of $LAB tokens from their hot wallets also fueled the high selling volume. The protocol had lost most of its revenue, with daily revenue collapsing from a high of $191K seen last September to around $6.20K. Long liquidations have spiked, with $513K wiped out against $44K in short orders.