It brought one of the biggest shocks in the crypto market in recent times with a $LAB token. After a drop of more than 80% from its record high, it is now moving around $1.18. As various questions were raised about the project’s internal token supply and on-chain transparency, the market saw intense panic selling.
Many traders have recovered losses by averaging down from $8 gradually, bringing their entry price down to $3.3. But is it even possible to reach the break-even point in the current situation?
Technical and Fundamental Reality:
1. Short-Term Bounce: If the current support level can hold and a short squeeze occurs, there may be an opportunity for the price to recover somewhat.
2. Supply and Unlock Risk: Since there is a token unlock schedule in the front, there is a possibility of additional selling pressure in the market. If sufficient liquidity does not return, significant volatility will remain in the long term.
Trading Advice:
At this moment, adding new capital and averaging down can be extremely risky. If the market shows any positive news or a bounce, it would be wise to close the position at breakeven or partially in loss to save capital.
To those of you who are holding LAB, what is your current strategy? Let us know in the comments.
Disclaimer: This is not financial advice. Before trading, make sure to do your own analysis (DYOR).
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