LAB surges 28% after defending $12 support

• LAB (CRYPTO:LAB) jumped 27.96% to US$15.48 after buyers successfully defended the US$12 breakout level.
• The rally was supported by more than US$646,000 in short liquidations, significantly outweighing long liquidations.
• Traders are watching whether fresh buying demand can push LAB above key resistance near US$16.21 and toward US$18.80.

LAB (CRYPTO:LAB) climbed 27.96% to US$15.48 over the past 24 hours, outperforming Bitcoin (CRYPTO:BTC), which gained 0.97%, as buyers defended a key support zone near US$12.

The rebound followed a decline of more than 21% on June 20, with the successful defence of the June breakout level preventing a deeper correction and shifting attention back to higher resistance levels.

“The success of this rally will depend upon whether new demand will replace the current demand driven by selling,” according to the market analysis.

LAB has since advanced toward the 50% and 61.8% Fibonacci retracement levels that have influenced price action throughout June, while the Relative Strength Index recovered to 61.5 after previously exceeding 75 near the US$18.80 high.

Liquidation data from CoinGlass showed total liquidations of approximately US$815,580 during the past 24 hours, including more than US$646,250 in short positions and US$169,330 in long positions, indicating that short covering contributed significantly to the rally. Following the move the LAB price was up 27.96% at US$15.48.

Market participants are now focused on whether LAB can reclaim resistance at US$16.21, which could strengthen momentum and support a retest of the US$18.80 high.

A break above US$18.80 could reopen the path toward the previous peak of US$21.37, while failure to overcome resistance could see the token retreat toward support levels at US$13.27 and US$11.07.

At the time of reporting, LAB price was $14.97.