Arbitrum price prepares for recovery as whales accumulate $200 million worth of ARB
|- Arbitrum price has been sideways bound since early May, trading below $1.2.
- Arbitrum whales, in the span of a week, accrued more than 178 million ARB tokens in anticipation of a rise.
- The lack of recovery has spooked investors to the point where HODLing has become the better option for now.
Arbitrum price for most parts has been following the broader market’s cues keeping its head down, but by the looks of it, ARB holders have had enough. The whale cohort is now anticipating a bounce back in price, but whether that is with the intention of gains or profit booking is yet to be known.
Abritrum price to climb up
Arbitrum price is currently trading at $1.17, up by more than 5% in the span of 24 hours. For most of this month, the altcoin has remained consolidated within the range of $1.22 and $1.08. Testing the latter price as support multiple times in the last couple of days, ARB has managed to bounce back every time.
ARB/USD 1-day chart
But at the same time, it has failed to breach the resistance of $1.22, acting as the upper range of the consolidation. However, moving sideways generated enough momentum for the altcoin that the only way left is up.
Once the aforementioned resistance level is breached and flipped into a support floor, the altcoin will gain enough steam to undo the losses witnessed during the 20% crash earlier this month.
The investors are pining for the same and doing their part in making it happen. Well, at least the whales are. The cohorts holding more than 1 million and less than 10 million ARB has been consistently accumulating for the last few days preparing for the price to go up.
In the week since May 18, this cohort has amassed nearly $208 million worth of ARB as their total holding shot up from 385 million to 563 million ARB. Interestingly retail investors did not exhibit a similar behavior suggesting they are still spooked by the broader market bearish cues.
Arbitrum whale holding
This is visible in the rate at which an ARB token has been changing addresses. The velocity indicator, which has been declining since the beginning of April, shows that most of the investors have deemed it appropriate to HODL for now.
Unwilling to move their assets exhibits fear of losses which is why investors are awaiting recovery.
Arbitrum velocity
Once Arbitrum price begins recovery, the retail investors would become active again and also provide whales with a chance to cash in their profits. However, it must be noted that if the whales end up booking profits, ARB price could take a hit again.
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