Deep Dive
1. Token Unlock Overhang (Bearish Impact)
Overview: On-chain data revealed 40M LA tokens (≈$16.4M at current prices) from foundation/ecosystem allocations were transferred to exchanges in July/August 2025 (CoinMarketCap Community). With no max supply cap and 4% annual inflation, this stoked fears of sustained selling pressure.
What this means: LA’s circulating supply (193M) could expand by 20%+ if these tokens are sold, creating headwinds for price appreciation. The project’s "work-based" tokenomics tie LA demand to proof-generation activity, which hasn’t kept pace with supply growth recently.
Key watch: Exchange outflow data and foundation’s buyback plans (July 14 announcement).
2. Technical Pullback (Mixed Impact)
Overview: LA retraced from a 7-day high of $0.45 (Nov 9) to $0.41, breaking below the 7-day EMA ($0.406). RSI 7-day (61.89) cooled from overbought levels, while MACD histogram turned negative.
What this means: The dip aligns with healthy profit-taking after a 30% monthly gain. However, losing the $0.40 support (38.2% Fibonacci level) could trigger a deeper correction toward $0.365 (50% Fib).
Key watch: Sustained closes above the 30-day SMA ($0.394) to maintain bullish structure.
3. Sector-Wide Risk-Off Sentiment (Bearish Impact)
Overview: Crypto markets fell 3.21% amid fear-driven trading (CMC Fear & Greed Index: 31). Bitcoin dominance rose to 59.49%, pressuring alts like LA.
What this means: As a mid-cap ZK/AI infrastructure token, LA is disproportionately impacted by liquidity shifts to Bitcoin during risk aversion. The Altcoin Season Index (26/100) signals minimal rotation to small caps.
Conclusion
LA’s dip reflects token supply anxieties, technical consolidation, and macro headwinds – but its core ZK/AI thesis remains intact with partnerships like Intel/NVIDIA. Key watch: Whether the $0.40 support holds in the next 48h as global markets digest Fed policy cues.