• LAB gains over 24% to trade above $18.00 on Wednesday.
• LAB’s recovery builds on a robust technical structure, with momentum indicators uptrending alongside major moving averages.
• Low retail participation, with perpetual futures Open Interest at $249 million and a negative OI-Weighted Funding Rate, could limit LAB’s upside.

LAB edges higher above $18.00 at the time of writing on Wednesday, defying broader crypto market headwinds that have constrained Bitcoin (BTC) in the $62,000-$63,000 range and Ethereum (ETH) between $1,600 and $1,700.

LAB extends rally despite cooling retail demand

Retail participation in LAB’s derivatives market remains subdued, evidenced by perpetual futures Open Interest (OI) averaging $249 million on Wednesday, a marginal dip from $251 million previously. CoinGlass data highlights that current OI levels are well below the recent spike to $381 million on June 19 and the all-time high of $824 million set on June 2.

This muted participation suggests persistent investor skepticism about LAB’s rally, resulting in limited appetite to open new long positions.

LAB’s OI-Weighted Funding Rate, currently in negative territory, aligns with the suppressed retail participation. A persistent negative reading signals that bears are willing to pay premium fees to keep their short positions open, anticipating a significant reversal despite the rally above $18.00.

Price analysis: LAB gains momentum as bulls tighten grip

LAB trades above $18.00, increasing by over 24% on the day. The token exhibits a robust bullish outlook, underpinned by uptrending moving averages and momentum indicators.

The Moving Average Convergence Divergence (MACD) histogram has turned positive on the 4-hour chart, suggesting buyers have the upper hand and can keep the uptrend intact.

A daily close above $18.00 would reinforce LAB’s near-term bullish bias and increase the odds of an extended rally beyond the next target at $20.00. A cup-and-handle pattern on the same chart indicates that LAB is poised for a notable 64% upswing to new all-time highs near $30.00. LAB currently sits above the breakout point at $18.00.

Given that retail participation remains low, further price increases could be limited, potentially triggering a reversal. Profit-taking and buyer exhaustion are among the factors that could increase downside risks.

The $16.00 level marks the first psychological support range, where sidelined buyers could engage. However, if headwinds intensify, traders may look to the 50-period Exponential Moving Average (EMA) at $14.53, the 100-period EMA at $13.02, and the 200-period EMA at $10.82 for support and buy-the-dip opportunities.

LAB is a unified layer for on-chain trading, combining analysis, execution, perpetuals and rewards.