Two large investors recently earned a profit of $3.29 million by selling 2.77 million ARB tokens. The price of ARB could potentially rise because of two factors.
The upcoming token unlock and the Ethereum Dencum upgrade. If ARB manages to surpass the resistance level of $2.15, it could see a further increase to $3.
Arbitrum and Ethereum Face Key Events
Arbitrum (ARB) and Ethereum (ETH) are approaching significant events: the token unlock for Arbitrum and the Dencun Upgrade for Ethereum. Recently, two whales moved millions of ARB tokens, depositing 2.77 million tokens into Binance, valued at $5.94 million at the time, resulting in a $3.29 million profit.
The Arbitrum token unlock is set for March 16, with Ethereum’s Dencun Upgrade scheduled three days earlier. While some view these events optimistically for ARB, the token release could flood the market with 1.1 billion tokens, potentially affecting ARB’s liquidity, volatility, and trading volume. Typically, such token unlocks can lead to price declines due to increased supply.
Ahead of two important $ARB events next week, two whales 0x141 and 0xc99 jointly deposited 2.77M $ARB ($5.94M) on #Binance ~8hrs ago, allegedly realizing $3.29M in profit.
Please take note of the dates of the 2 upcoming events that can impact the ARB price next week:
— Spot On Chain (@spotonchain) March 10, 2024
Despite potential downward pressure from the token unlock, the Dencun Upgrade offers a positive outlook, possibly reducing costs for Layer 2 projects like Arbitrum. Given the proximity of these events, any decline in ARB’s price may be mitigated by increased demand, minimizing the overall impact on the token’s value.
Analysis of ARB Price Trends and Potential Scenarios
At the time of writing, ARB was trading at $2.10, marking a 3.04% decline in the past 24 hours, possibly influenced by recent whale sell-offs. However, this dip could present an opportunity for buyers to acquire the token at a discounted rate.
Examining the 4-hour ARB/USD chart reveals that buyers capitalized on seller exhaustion, establishing support at $2.07. Despite efforts to push the price higher, a new obstacle emerged at $2.15, representing overhead resistance.
ARB/USD 4-Hour Chart
Should ARB successfully surpass the $2.15 resistance level, it could pave the way for a price surge towards $3. However, failure to breach this barrier may result in a decline below $2.
The Relative Strength Index (RSI) indicates bearish dominance, having dipped below the midpoint. However, signs suggest a potential break above this barrier, which could facilitate ARB’s advance beyond $2.15. Meanwhile, the Bollinger Bands (BB) suggest high volatility, implying wide price fluctuations.
In a highly bullish scenario, ARB could achieve a new all-time high, contingent upon significant buying pressure and reduced liquidations. Conversely, in a bearish scenario, the token’s value might decline to $1.85.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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