$LAB crypto rallied 27.96% to $15.48 in 24 hours, far exceeding Bitcoin’s 0.97% advance, as buyers continued building momentum from the recent defense of the $12 breakout zone. The altcoin had declined by over 21% on the 20th of June, sitting at $12. Buyers were able to defend the June breakout level and, in doing so, prevented a deeper pullback.
As the price continued upward, $LAB began moving up toward the 61.8% and 50% Fibonacci retracements. These retracement levels had been influencing price all month long. Traders were determining whether the decline was a short-term correction or the beginning of a longer-term trend change as the price hovered in between them.
Meanwhile, the RSI moved to 61.5 after declining from overbought conditions above 75 near the $18.80 high. This shift indicates improving momentum. As a result, buyers appear to be regaining strength.
Source:
$LAB/USDT on TradingView
Even so, volume has decreased significantly since buyers drove price to the $21.37 high. This suggests participation remains limited. Therefore, conviction is yet to fully return.
For now, $LAB must reclaim the $16.21 level. If buyers achieve that with stronger volume, momentum could strengthen further. Yet, the price could retest the $18.80 high. A successful breakout there could then open the path back toward the previous high of $21.37.
On the other hand, resistance remains a key obstacle. If $LAB fails to overcome it, the probability of a move back to $13.27 increases. Should selling pressure persist, the risk of a deeper decline toward the critical $11.07 support zone would also rise.
Short liquidations fuel the rally
As buyers tried to get back above the resistance level, liquidation activity fueled the upward movement. According to CoinGlass data, the last 24 hours saw an increase in total liquidations to the tune of $815,580. Shorts accounted for over $646,250, and longs accounted for $169,330.
Source: CoinGlass
This imbalance suggests bearish traders absorbed most of the losses as price rebounded from $12 toward $15.48. Therefore, at this point the success of this rally will depend upon whether new demand will replace the current demand driven by selling.
Final Summary
- $LAB reclaimed key support and recovered sharply, but stronger volume remains essential for a sustained move higher.
- $LAB benefited from heavy short liquidations, though fresh buyer demand must emerge to maintain momentum.
