LAB crashes 21% as traders turn bearish – Here’s why prices can fall further

Selling pressure continued weighing on LAB, as the token declined 21.6% to $12.09 over the past 24 hours, while trading volume fell 23.06% to $50 million. The decline followed a failed attempt to sustain higher prices after LAB approached a major resistance area earlier this month. Although buyers managed to keep the token above key support levels, the broader market structure still reflected caution.. The combination of declining price and softer trading activity indicated that buyer participation had weakened following the latest rejection from resistance. Why are Binance traders leaning heavily short? Binance derivatives data showed that traders continued positioning for additional downside despite LAB’s already significant decline. Long accounts represented only 28.69% of top trader positions, while short accounts accounted for 71.31%. This imbalance pushed the Long/Short Ratio down to 0.40, highlighting a strong preference for bearish exposure among experienced market participants. Such positioning often reflects expectations of further weakness, especially after a failed attempt to sustain higher prices. However, heavily one-sided positioning can sometimes increase volatility if market conditions shift unexpectedly. For now, traders appeared unconvinced that LAB had established a durable bottom. Source: CoinGlass Rejection at resistance keeps LAB in focus LAB pulled back after failing to establish a breakout above the $17.78 resistance zone. The rejection occurred near a key supply area that had capped recent advances and triggered renewed selling pressure. Following that setback, price retreated toward $12.44 while remaining well above the major support zone around $9.15. RSI reflected a relatively balanced market structure despite the decline. The indicator printed 54.53, while its moving average stood at 56.28, placing both readings near neutral territory. These values showed that neither buyers nor sellers had secured overwhelming control from a momentum perspective. If buyers reclaim strength and push the price back toward $17.78, LAB could attempt another challenge of resistance. On the other hand, continued weakness could expose the $9.15 support region, which remains the next major level traders are likely to monitor closely. Source: TradingView Positive Funding Rates tell a different story LAB’s OI-Weighted Funding Rate remained positive at 0.0127%, indicating that long traders continued paying a premium to maintain their positions. This reading contrasted with the overwhelming short bias observed among Binance top traders. The discrepancy suggested that some participants still anticipated a recovery despite recent market weakness. Nevertheless, the FundingRate had moderated significantly from the stronger spikes recorded earlier in the month. That shift indicated that bullish conviction had cooled as LAB moved away from its recent highs. Although positive funding often reflects lingering confidence among leveraged traders, the broader market structure continued favoring caution. Until price regains lost ground, positive funding alone appears insufficient to offset the bearish sentiment reflected across trader positioning data. Source: CoinGlass Final Summary Binance traders remained heavily short despite LAB stabilizing above recent lows. LAB stayed trapped below resistance while funding rates continued holding positive.