The Arbitrum (ARB) token has been on the rise lately, with a price increase of 20% in the past seven days. The cryptocurrency is the native token of the Arbitrum network, a Layer-2 scaling solution for the Ethereum blockchain. This protocol is designed to increase transaction speed, improve scalability, and enhance privacy on the Ethereum network.
ARB Continues Market Recovery – Jumps 18% in Two Weeks
The ARB token has shown mixed price performance in June, initially falling below the $1 mark just before mid-month. However, the coin has been showing signs of recovery lately and is up more than 30% since June 15.
Related reading: Injective (INJ) continues to build momentum, jumping nearly 27% in one week
After hovering around the $1 level between June 17 and June 19 – with little price action – the Arbitrum price finally broke above this threshold on June 20. Since then, the cryptocurrency has gained positive momentum.
The Relative Strength Index (RSI), an on-chain indicator that tracks the balance between buying and selling pressure, indicates that a positive trend is emerging for Arbitrum. The daily RSI is well above 50, indicating increased buying pressure.
According to CoinGecko, the ARB token is currently trading at $1.21, having gained 6% in the past 24 hours. As of today, the cryptocurrency has a 24-hour trading volume of over $373 million, which is also up 42.1% in the past day.
ARBUSD trading at $1.2182 | Source: ARBUSD chart from TradingView
Arbitrum market is experiencing massive whale activity
It’s hard to say definitively what’s driving Arbitrum’s price right now. However, there has been a lot of whale activity in the market over the past few days, suggesting that there may be something going on that most investors don’t see.
According to the blockchain analytics platform Look at chain, two sleeping whales bought ARB tokens right before big price moves. On June 25, whale “0x1b67” became active after 1.6 years of dormancy and withdrew 450,881 ARB (worth approximately $507,000) from Binance.
Prior to this transaction, another whale (0x79cc), which had been dormant for six months, bought 1.57 million ARB tokens with 939 ETH (worth $1.68 million at the time) on June 20.
In addition, there has been a large accumulation of whales in the market in the past 24 hours. According to Lookonchain, whale “0xb28f” bought 321,934 ARB with 200 ETH (approximately $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 (approximately $528,000) to purchase 538,558 ARB tokens.
Buy whales $ARB!
Whale”0xb28f” spent 200 $ETH ($375K) to buy 321,934 $ARB at $1.16 again 2 hours ago.
“0xb28f” issued 300 once $ETH ($525K) to buy 538,558 $ARB for $0.98 on June 10.
Another whale “0x79cc” brought in 1,058,665 $USDC to buy 937,176 $ARB at $1.13 about 10 hours ago. pic.twitter.com/YsHriraZkr
— Lookonchain (@lookonchain) June 27, 2023
Related Reading: How High Can Bitcoin Price Rise Due to Spot ETFs? Run 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. In addition, as there appears to be a pattern, investors could look forward to even more whale transactions.
Featured image of Unsplash, chart from TradingView