The Arbitrum (ARB) token has been on the rise lately, with a 20% price increase in the past seven days. The cryptocurrency is the native token of the Arbitrum network, which is a Layer-2 scaling solution for the Ethereum blockchain. This protocol is designed to boost transaction speed, enhance scalability, and improve privacy on the Ethereum network.
ARB Continues Market Recovery – Jumps By 18% In Two Weeks
The ARB token has seen a mixed price performance in June, initially falling beneath the $1 mark just before the middle of the month. However, the coin has been showing signs of recovery lately, jumping by more than 30% since June 15.
Related Reading: Injective (INJ) Continues To Build Momentum, Jumps Nearly 27% In A Single Week
After hovering around the $1 level – with little price action – between June 17 and 19, the Arbitrum price eventually broke above this threshold on the 20th of June. The cryptocurrency has been on a positive momentum since then.
The Relative Strength Index (RSI), an on-chain indicator that tracks the balance between buying and selling pressure, signals that a positive trend is forming for Arbitrum. The daily RSI is well above the 50 mark, indicating increased buying pressure.
According to CoinGecko, the ARB token is currently trading at $1.21, with a 6% gain in the last 24 hours. As of today, the cryptocurrency has a 24-hour trading volume of more than $373 million, which also increased by 42.1% in the past day.
ARBUSD trading at $1.2182 | Source: ARBUSD chart from TradingView
Arbitrum Market Experiences Massive Whale Activity
It is difficult to definitively say what is driving the price of Arbitrum at the moment. However, there has been high whale activity in the market in the past few days, suggesting that there may be something going on that most investors are not seeing.
According to blockchain analytics platform Lookonchain, two dormant whales bought ARB tokens just before major price movements. On June 25, whale “0x1b67” became active after 1.6 years of dormancy and withdrew 450,881 ARB (worth roughly $507,000) from Binance.
Prior to this transaction, another whale (0x79cc), who had been dormant for six months, purchased 1.57 million ARB tokens with 939 ETH (worth $1.68 million at the time) on June 20.
Furthermore, there has been some major whale accumulation in the market in the past 24 hours. According to Lookonchain, whale “0xb28f” purchased 321,934 ARB with 200 ETH (roughly $375,000) in the early hours of today.
It is worth noting that this whale made a similar purchase on June 10, spending 300 ETH (around $528,000) to buy 538,558 ARB tokens.
Whales are buying $ARB!
Whale”0xb28f” spent 200 $ETH ($375K) to buy 321,934 $ARB at $1.16 again 2 hrs ago.
“0xb28f” once spent 300 $ETH ($525K) to buy 538,558 $ARB at $0.98 on June 10.
Another whale”0x79cc” spent 1,058,665 $USDC to buy 937,176 $ARB at $1.13 about 10 hrs ago. pic.twitter.com/YsHriraZkr
— Lookonchain (@lookonchain) June 27, 2023
Related Reading: How High Can Bitcoin Price Rise Due To Spot ETFs? Running The Numbers
While we don’t always know what to expect from the whales, it would be interesting to see how their activity would affect the Arbitrum market. Moreover, since there seems to be a pattern, investors might want to be on the lookout for any more whale transactions.
Featured image from Unsplash, chart from TradingView
