Due to the bear market, Arbitrum (ARB) has been one of the tokens to hold a significant portion of its all-time high. Along the same lines, the digital asset is one of the few tokens currently flashing a green bullish flag, and accumulation has increased as a result.
ARB Whale Accumulation Rising
Transactions on the Arbitrum blockchain on Thursday, July 20 indicate massive accumulation among major investors. These trades were flagged by on-chain data tracker Lookonchain, dating back to July 17, when the accumulation trend appeared to have begun.
On Monday, Lookonchain reported three transactions involving 3.76 million ARB worth $5 million at the time from the Binance exchange to known whale wallets. While these transactions were significant, it didn’t stop there.
The next day, July 18, the tracker spotted another transaction with 4 million ARB. The source of the transaction was the same, with coins worth $5 million at the time being moved from Binance to a private wallet.
The most recent whale accumulation happened on Wednesday, July 19, with the biggest ARB shooting of the bunch. This time, a whale identified as “0x6950” attracted 4.6 million ARB worth $5.84 million at the time of the transaction from Binance.
Whale”0x6950” withdrew 4.6 million $ARB ($5.84 million) of #Binance just now again.
The whale has retreated a total of 9M $ARB ($11.4 million) of #Binance in the past 2 days.https://t.co/E9GCmJ7ftc pic.twitter.com/FNI1gBbxrd
— Lookonchain (@lookonchain) July 19, 2023
All of these trades indicate a consistent accumulation trend among these large holders, which could indicate that they expect price recovery soon. Their withdrawals have also reduced the amount of selling pressure on the digital asset and this could also provide support for any rally from now on.
Arbitrum continues to dominate Layer 2 Blockchains
Arbitrum has seen a lot of success in the market and this adds to the bullishness surrounding its own ARB token. Arbitration currently features the largest Total Value Locked (TVL) of all Ethereum Layer 2 blockchainsincluding Polygon and Optimism.
While the Polygon and Optimism TVLs are $1.027 billion and $926 million, respectively, the Arbitrum network’s TVL is $2.68 billion. This figure makes the L2 the fourth largest by TVL in all blockchainscoming behind heavy hitters like Ethereum, Tron, and BSC.
With Arbitrum controlling a significant portion of the L2 TVL, the native token is expected to rise alongside it as well. Currently, ARB is trading at $1.29 with a price gain of 3.33% in the last 24 hours. However, the price could easily climb to $1.5 if whale accumulation continues and selling pressure continues to ease.
ARB price retests $1.3 resistance | Source: ARBUSD on Tradingview.com