On June 2, the price of Arbitrum rose in tandem with the leading cryptocurrencies following the United States Senate’s decision to increase the debt limit.
Why is the ARB price up today?
Arbitrum’s (ARB) price increased 9%, reaching an intraday peak of $1.25, outperforming the 1.5% growth of the entire cryptocurrency market during the same timeframe.
Arbitrum’s superior performance coincided with some peculiar trading behavior linked to the well-known trader Andrew Kang’s cryptocurrency addresses.
On June 2, it was notable that the co-founder of Mechanism Capital deposited $1 million worth of stablecoins into Arbitrum pools, and spent more than 20% of the amount to purchase RDNT, the token native to the decentralized finance lending platform Radiant Capital.
Kang later exchanged his RDNT reserves, both newly bought and already owned, for ARB worth $867,000. He then deposited the funds to Radiant Capital in order to borrow Circle’s USD Coin (USDC), according to Lookonchain data.
The platform stated:
Is the ARB rally sustainable?
Lookonchain uncovered the fact that a whale of unknown identity moved $1.5 million worth of ARB to the OKX exchange at the same time as Kang’s transfers mentioned previously.
Investors typically deposit tokens into crypto exchanges for the purpose of selling, which could lead to a decline in ARB’s value if its demand decreases. Interestingly, the token’s technical analysis on the daily chart appears to show the same.
The Jimbos Protocol, which is based on Arbitrum, was hacked, resulting in a loss of $7.5M worth of Ether.
It is noteworthy that ARB has printed what appears to be a bear flag, which has been confirmed by the price stabilizing between two ascending, parallel trendlines, following a powerful decline. Generally, a bear flag terminates after the cost falls beneath the lower trendline and drops by the same amount as the preceding downtrend.
This puts ARB on a path to reach $0.95 in June, representing a decrease of approximately 20% from current levels.
In contrast, if the Arbitrum token breaks above the upper trendline of the flag, it is likely to invalidate the bearish outlook and put the token on a path towards the $1.35 resistance level from the March to May 2023 period.
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