Deep Dive
1. Token Supply Pressure (Bearish Impact)
Overview:
On-chain data revealed transfers of 40M LA tokens (~20% of circulating supply) to exchanges on July 9–10, 2025. These originated from the Foundation/Ecosystem allocations, sparking fears of imminent selling.
What this means:
LA’s circulating supply is 193M – adding 40M could dilute holders by ~21% if fully sold. The token’s 4% annual inflation and lack of hard cap exacerbate supply concerns. Historically, LA dropped 22% after a similar Binance listing in July 2025 due to post-listing sell-offs.
What to watch:
Exchange outflow data and Foundation’s buyback execution status.
2. Technical Breakdown (Mixed Impact)
Overview:
LA rejected at the critical 50% Fibonacci retracement level ($0.375) and fell below its 7-day SMA ($0.3517). RSI (59) shows neutral momentum, but MACD hints at weakening bullish divergence.
What this means:
Traders exited positions after the failed breakout, targeting the next support at $0.355 (24h low). The 7-day +11.97% rally likely attracted profit-taking, amplified by LA’s history of volatility – it crashed 77% from its June 2025 ATH ($1.72) post-Coinbase listing.
Key level:
A close below $0.355 could trigger stops toward $0.327 (August 2025 low).
3. Macro Altcoin Rotation (Neutral Impact)
While the crypto market grew 1.38% in 24h, LA underperformed despite the Altcoin Season Index rising to 69 (+64% monthly). Investors may favor tokens with clearer inflation controls – LA’s infinite supply contrasts with projects like Hyperion (fixed 1B supply) highlighted in recent trending lists.
Conclusion
LA’s dip reflects project-specific risks (supply shocks, tokenomics) outweighing neutral market conditions. The Foundation’s proposed buyback (announced July 14) remains unexecuted, leaving markets skeptical.
Key watch: Can LA hold $0.355 support amid rising exchange reserves, or will inflation fears drive another leg down?