Recently, the LA token of the Lagrange project has become the focus in the cryptocurrency market. From June 22 to 25, Binance conducted an airdrop event for LA tokens, targeting users who subscribed BNB to easy earnings (flexible or locked earnings) and/or on-chain earnings products, distributing a total of 15 million LA, accounting for 1.5% of the total genesis supply. On July 9, Binance officially launched LA and opened trading pairs with USDT, USDC, BNB, FDUSD, and TRY. Binance Alpha had previously launched Lagrange (LA). This listing news was expected to be a catalyst for LA price increase, but the reality was unexpected.
After Binance announced the launch, the price of LA fell instead of rising, entering a rapid downward channel. On July 9, LA was still at a 7-day high of $0.676, but within just 24 hours, it plummeted to $0.416. By July 11, it had dropped another 12.2% in daily trading, and despite the trading volume exceeding $164 million that day, the closing price was only $0.3996. As of now, after significant correction, the LA price hovers around the key support level of $0.3902, with a price drop of over 22% in 7 days.
Some analysts pointed out that Binance's announcement may have led traders who were privy to the news to take profits, causing the LA price to drop. This price decline occurred after LA's price surged 216% following its listing on Coinbase in June, where LA had set a historical high of $1.72 on June 6, and then reversed sharply, having decreased nearly 77% from its peak since then, raising concerns among investors about the sustainability of LA's returns.
In response to the fluctuations in LA price, the Lagrange Foundation quickly reacted. On July 14, the Lagrange Foundation tweeted that it had noticed the issues with LA price fluctuations and announced that it may buy back LA tokens in the future to stabilize the price. The foundation promised that all buyback actions would strictly comply with relevant laws and regulations, and that after the buyback is completed, it would promptly disclose relevant information to the community. The LA tokens obtained from the buyback will be held by regulated custodians or prime broker accounts to support the development of the Lagrange Foundation, its protocol, and its ecosystem.
Currently, the future trend of LA is full of uncertainty. If it can maintain above the support level of $0.3900, there may be a slight rebound in the short term as positive market momentum spreads, potentially rising to $0.4800 to $0.5000; conversely, if it falls below this key support level, selling pressure may increase significantly, and the LA price could further explore the bottom. For investors, while LA has a technical basis for the project, the risk of price fluctuations should not be underestimated, and they need to closely monitor market signals and make investment decisions cautiously.
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