PiggyBank Closes LAB Hedge Amid Volatility
- Hedge Closure: PiggyBank closed its LAB short position due to sharp price swings and negative funding rates, anticipating a 15% drawdown in its USDC vault, highlighting the urgency of its risk management practices.
- Asset Value Adjustment: The protocol valued its locked LAB position at $1.35 million but excluded it from net asset calculations due to its inability to sell, leading to potential declines of 12% for SPYx and 9% for JitoSOL, reflecting risks from insufficient market liquidity.
- Risk Control Scrutiny: ZachXBT questioned why user funds were exposed to LAB, alleging that over 95% of the token's supply is controlled by insiders, suggesting flaws in PiggyBank's risk management that could undermine user trust.
- Pending Follow-Up Report: PiggyBank has committed to releasing a detailed report outlining trade records, risk thresholds, and loss calculations, leaving users with limited information on the final recovery value of the LAB position, which adds uncertainty to the market.
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Technical Analysis for LAB
Technical Sentiment Analysis for LAB (LAB). As of , LAB (LAB) is exhibiting a Strong buy technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 4 indicators are flashing buy, while 0 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for LAB stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, LAB is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
LAB (LAB) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | -2.847 | 1.852 | 6.169 | 10.867 | 15.185 | 19.883 | 24.201 |
| Fibonacci | 1.852 | 5.296 | 7.423 | 10.867 | 14.311 | 16.439 | 19.883 |
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