invezz.com
$LAB price has plunged more than 97% in the past week as on-chain evidence of team-linked selling and concerns around fresh token unlock have raised the risk of another leg lower.
$LAB, the native token of multi-chain trading platform $LAB Trade, traded near $0.41 on July 14 after losing roughly 97% of its value over the past seven days.
The token had climbed to around $17 earlier this month before an aggressive sell-off erased almost all of those gains.
CoinGecko data showed $LAB continued to decline over the past 24 hours. Although the token briefly rebounded from its intraday low, it remained close to its weakest level since launch.
Team-linked selling and token unlock deepen pressure
Fresh on-chain findings have added another layer of pressure on $LAB.
According to ZachXBT, the recent sell-off was not driven by external market participants.
The investigator said wallets funded by the $LAB Trade team coordinated transfers that eventually led to heavy selling on the Aster decentralized exchange.
The investigation traced more than 196 million $LAB transferred from a team wallet in April before the tokens moved through Bitget deposit addresses and later reached the selling entity.
Within the last 48 hours, the same entity sold another 18.4 million $LAB, valued at about $18.3 million at the time of execution, contributing to a fresh decline from roughly $1.20 to $0.55.
Separate findings shared by ZachXBT also identified coordinated transfers involving 226 million $LAB to Bitget-linked addresses.
While the figures refer to different stages of the movement, both analyses point to wallets connected to the project's internal distribution.
The selling wallets still control about 81.5 million $LAB, leaving a sizeable amount of tokens that could enter the market later.
ZachXBT has also alleged since May that insiders collectively control more than 95% of $LAB's total supply.
The project previously blamed "large external market participants" for the collapse and burned 10 million $LAB in an effort to calm investors.
However, the blockchain data presented by ZachXBT has shifted attention back to wallets linked to the project's own token distribution.
Another source of selling pressure arrives on July 14 through a scheduled unlock of 16.23 million $LAB, equal to roughly 1.6% of the token's maximum supply.
At current prices, the unlocked allocation is worth about $4.1 million and represents the first monthly release scheduled to continue through December 2026.
Early investors have another reason to sell.
Only 313 presale participants contributed about $1.4 million during the token sale. At $LAB's peak, those allocations were briefly worth almost $977 million on paper.
Even after the crash, many of those holders remain comfortably profitable because of their extremely low acquisition cost.
CoinLaunch data has added another concern by classifying 70.8% of $LAB's total supply as "Untracked," indicating that a large portion of tokens lacks publicly disclosed allocation tracking.
The platform says those holdings could potentially enter circulation without advance notice.
$LAB price analysis
The daily chart shows $LAB remaining in a strong downtrend after a nearly vertical collapse from its July highs.
$LAB/$USDT 1-day price chart. Source: TradingView.
Large bearish candles pushed the token below every recent support level before the price settled near $0.44, with only limited attempts to recover.
Momentum indicators continue to favour sellers.
The Relative Strength Index (RSI) has recovered slightly to around 36.6 after reaching deeply oversold territory, but it remains below the neutral 50 level.
This suggests bearish momentum has weakened somewhat without confirming that buyers have regained control.
The MACD also remains negative. The MACD line continues to trade below both the signal line and the zero level, while the histogram, although beginning to contract, still points to prevailing downside momentum instead of a confirmed trend reversal.
Volume data supports the on-chain evidence as seen below.
$LAB/$USDT 1-day price chart. Source: TradingView.
Trading activity increased sharply during the breakdown as several large red volume bars appeared alongside the steepest price declines.
The On-Balance Volume (OBV) indicator has also fallen sharply after staying relatively stable during $LAB's rally, signalling sustained capital outflows rather than isolated profit-taking.
As of publication time, the charts indicate that $LAB has yet to establish a convincing support level.
Any recovery would likely require selling pressure from the team-linked wallets and future token unlocks to ease before buyers regain confidence.
For now, the remaining 81.5 million $LAB held by wallets identified in ZachXBT's investigation and the monthly unlock schedule leave the token exposed to renewed selling if additional transfers reach exchanges.
Until technical indicators begin to improve and distribution pressure subsides, the risk of another leg lower remains elevated.