LAB token jumped more than 19% in a single day, pushing back above the $17 mark. The rally, driven by heavy whale buying, pulled the token off its recent lows near $7 and set up a test of key resistance levels. But the move comes on thin volume, and a scheduled token unlock next month could cap further gains.
Whale long-to-short ratio surges
Data from whale tracking shows the long-to-short ratio hitting 260.67%, meaning long exposure outweighs shorts by 2.6 times among 214 tracked whales. Of those, 129 long whales hold $27.58 million in positions with an average entry of $10.25. That leaves them showing 92.24% profitability and $4.73 million in unrealized gains.
On the short side, 85 whales hold $10.58 million at an average entry of $10.85. Only 4.70% of those positions are in profit, with $1.30 million in unrealized losses. Over the past hour, 67 whales bought against 35 sellers, generating net buy volume of $490,000 versus $179,000 in net selling. That buying pressure helped LAB recover from the $7 support band, where larger holders defended the price and printed a higher low.
Technical setup shows room to run — and warning signs
The daily Relative Strength Index (RSI) sits near 65 and is rising into bullish territory. The hourly RSI trades inside an ascending parallel channel, leaving room for a push toward overbought extremes. The token currently tests the 0.5 Fibonacci retracement at $16.03 as resistance. If that level breaks, the next upside target is the 0.382 level near $18.84.
But the advance comes on thin volume. Parabolic moves into overbought conditions on weak participation often precede sharp pullbacks. Critical support sits at the 0.618 Fibonacci level of $13.21. Losing that would invalidate the bullish thesis and expose the 0.786 level near $9.20. A sustained move below the $13 zone would be the first sign that longs are unwinding.
August token unlock looms
A scheduled unlock of 282 million tokens in August could pressure the market. That volume represents a significant supply increase, and traders will be watching closely. The token has already fallen 77% from its record high of $27.96 in June. The current rally, while sharp, hasn't yet put LAB back into the territory where it traded before the June peak.
For now, the whale-driven buying has LAB testing key resistance. The question is whether the thin volume rally can sustain itself, or whether the August unlock and overhead supply will bring the token back down. A close below $13 would be the first clear signal that the bulls have lost control.
