The native token of multi-chain trading platform LAB Trade, LAB, has experienced a dramatic collapse, losing more than 97% of its value over the past week. Trading near $0.41 as of July 14, the token has fallen from a high of approximately $17 earlier this month, erasing nearly all gains in a rapid sell-off.
On-Chain Evidence Points to Insider Selling
Blockchain investigator ZachXBT has uncovered evidence suggesting that the recent decline was not driven by external market participants but by wallets linked to the LAB Trade team. According to the analysis, wallets funded by the team coordinated transfers that led to heavy selling on the Aster decentralized exchange. More than 196 million LAB were transferred from a team wallet in April, eventually moving through Bitget deposit addresses to a selling entity. In the last 48 hours, that entity sold an additional 18.4 million LAB, worth about $18.3 million at the time, contributing to a price drop from roughly $1.20 to $0.55.
Separate findings identified coordinated transfers of 226 million LAB to Bitget-linked addresses. The selling wallets still hold approximately 81.5 million LAB, representing a significant overhang that could enter the market. ZachXBT has alleged since May that insiders control more than 95% of LAB's total supply.
Token Unlock Adds Further Pressure
On July 14, a scheduled unlock of 16.23 million LAB (about 1.6% of the maximum supply) is set to release, valued at roughly $4.1 million at current prices. This is the first of monthly unlocks scheduled through December 2026, adding persistent selling pressure. Early investors, who contributed only about $1.4 million during the token sale, saw their allocations briefly worth nearly $977 million at the peak. Even after the crash, many remain profitable due to extremely low acquisition costs.
CoinLaunch data also shows that 70.8% of LAB's total supply is classified as "Untracked," meaning a large portion lacks publicly disclosed allocation tracking, raising transparency concerns.
Technical Analysis Shows No Signs of Recovery
The daily chart reveals LAB in a strong downtrend after a near-vertical collapse from July highs. Large bearish candles pushed the token below all recent support levels, settling near $0.44 with only limited recovery attempts. The Relative Strength Index (RSI) has recovered slightly to around 36.6 from deeply oversold territory but remains below the neutral 50 level, indicating that bearish momentum has eased without a shift to buyer control. The MACD remains negative, with the MACD line below both the signal line and zero, while the histogram, though contracting, still points to prevailing downside momentum.
Volume data supports the on-chain evidence, with trading activity spiking during the breakdown as large red volume bars accompanied the steepest declines. The On-Balance Volume (OBV) indicator has fallen sharply after staying relatively stable during LAB's rally, signaling sustained capital outflows rather than isolated profit-taking.
Outlook Remains Bearish
As of publication, LAB has yet to establish a convincing support level. Any recovery would likely require easing of selling pressure from team-linked wallets and future token unlocks before buyers regain confidence. With 81.5 million LAB still held by wallets identified in ZachXBT's investigation and a monthly unlock schedule, the token remains exposed to renewed selling if additional transfers reach exchanges. Until technical indicators improve and distribution pressure subsides, the risk of another leg lower remains elevated.
For context on other tokens facing recovery challenges, see our coverage of MemeCore Token's 90% surge after an 82% crash and Cardano's recovery test after a wallet exploit.
This article is for informational purposes only and does not constitute financial advice.
