Cryptocurrency Lagrange ($LA ) has fallen by 7.68% in the last 24 hours, which is significantly worse than the overall cryptocurrency market (-2.76%). The main reasons are concerns about token unlocking, technical resistance, and profit-taking after recent volatility.
Risks of token unlocking — 40 million $LA have been transferred to exchanges, raising concerns about mass sell-offs.
Technical resistance — failed to hold an important Fibonacci level at $0.4248.
Lagging behind the market — LA's decline exceeded the moderate correction of the cryptocurrency market.
Blockchain data showed the transfer of 40 million LA tokens (20.7% of circulation) from the foundation and ecosystem wallets to exchanges on August 9-10 (CoinMarketCap). Since the maximum number of tokens is unlimited, this raised concerns about value dilution.
What this means: Token unlocking often leads to selling pressure if recipients decide to withdraw funds. The LA inflation model (4% per year) creates additional complications. The buyback plan for tokens by the foundation in July (Lagrange Foundation) has not yet been implemented, which decreases investor confidence.