Following the launch of LAB's new rewards program, market activity surged, with the token price rising by approximately 25% intraday. This program directly links reward eligibility to transactions within the LAB App and LAB TG App, driving a short-term inflow of funds.
Transaction activity is included in the reward eligibility.
According to the event schedule announced by the project team, users can accumulate reward eligibility by completing transactions within the LAB ecosystem application. The rewards mainly consist of two parts: LAB token distribution and exclusive in-app benefits.
Following the announcement of this adjustment, the price of LAB quickly strengthened. Intraday price action showed the token breaking through $5 and even surpassing $6 at one point, indicating that the news had a significant impact on short-term sentiment.
Price breaks through the $5 mark
From the market performance, trading volume increased after the rewards program was launched, with some traders returning to the asset. For small- to mid-cap tokens like these, incentive programs often amplify trading activity in a short period, especially when liquidity is low, making it easier to drive prices up quickly.
However, whether the price can maintain its upward momentum after the rapid rise remains a key focus for the market. Short-term funds typically concentrate their inflows and outflows around expectations of future activities, which may increase price volatility.
The market is focused on the resistance level of $7.49.
Currently, the market is watching to see if LAB will further test the resistance level near $7.49. This area has previously acted as resistance during periods of high price volatility, and if buying pressure continues to strengthen, the token may retest this level.
The first support level to watch is $5. If the price breaks below this psychological level again, the current upward trend may weaken, and a pullback to the support area around $2.91 is possible.
Overall, LAB's recent surge was mainly driven by the new rewards season. In the short term, the focus remains on whether the platform's trading activity can be sustained and whether the incentive program can continue to support market sentiment.
