LAB rebounded from a low near $5.68 earlier in July and rallied to a high of $18.32. After reaching that level, the altcoin faced rejection and entered a steep decline.
The altcoin then recorded three consecutive lower daily closes and briefly fell below $1.
At press time, LAB traded around $1.17 after gaining roughly 25% over the past day. Market cap also climbed about 25% to nearly $366 million.
The rebound has been attributed by AMBCrypto to a deflationary move by the LAB team rather than stronger organic demand. The team burned 10 million LAB, worth about $11.3 million, while the token remained under heavy selling pressure. Reducing the circulating supply appeared to ease immediate selling pressure and helped LAB recover above $1. Historically, token burns have often supported short-term price recoveries.
Why did LAB rebound? The burn event reduced selling pressure and provided a short-term uplift. However, even after the rebound, the broader trend remained challenging as the MACD stayed deep in negative territory and selling pressure persisted.
Insiders controlled roughly 95% of the LAB supply, giving a small group significant market influence. ZachXBT alleged that a borrower address linked to the LAB contract was used for token buybacks, suggesting the team managed buybacks, burns, and token sales. However, larger supply increases may soon outweigh the recent burn, as upcoming unlocks could raise circulating supply and dilute the impact of the burn.
The MACD remained deep in negative territory at -2.2, indicating sellers continued to dominate momentum. If buying interest weakens after the token burn, LAB could fall below $1 again. Conversely, sustained demand would be needed to absorb the upcoming token unlocks and keep the recovery intact.
Final assessment: Burning tokens reduced pressure. Upcoming unlocks could restore it just as quickly. LAB recovered above $1, but dilution risks remain difficult to ignore.
