Arbitrum (ARB) is currently priced at $0.729, showing a more than 5% increase in value over the last 24 hours. Trading volume has also surged by 89% to reach $414 million, underscoring a growing interest in this particular altcoin.
Despite these recent gains, ARB continues to face downward pressure in the market. Data from IntoTheBlock indicates that 80% of ARB holders are currently experiencing losses, with the token’s price down 55% year-over-year.
Nevertheless, there have been several positive indicators pointing towards a potential trend reversal and the continuation of an upward trajectory.
Significant Accumulation of 10 Million ARB Tokens by Whales
There has been a notable increase in activity among Arbitrum whales, with a 38% uptick in large transaction volumes to 85.9 million ARB within a 24-hour period. This spike can be largely attributed to whale accumulation, evidenced by the influx of large holders.
Over the past couple of days, large addresses have acquired 10 million ARB tokens, signaling a favorable momentum shift. This accumulation coincided with the recent price increases, suggesting that whale activity has been steering the uptrend.
Whales currently hold 47% of the total supply of ARB. Hence, their buying activity is likely to exert a significant influence on the token’s price trajectory.
Upsurge in dApp Volumes Expected to Drive the Market
Decentralized application (dApp) volumes developed on the Arbitrum layer two network have surged by 121% to $1.27 billion in just one day, as reported by DappRadar. Additionally, transaction counts have risen by 16% to 143,000.
DeFiLlama data indicates that Arbitrum has surpassed its primary competitor, Base, in terms of decentralized exchange (DEX) volumes. At present, Arbitrum’s DEX volumes stand at $1.26 billion, marginally surpassing Base network’s $1.25 billion.
This surge in network activity is expected to stimulate demand, potentially supporting a sustained uptrend for ARB in the long run.
Predicting a Reversal in ARB’s Bearish Trends
ARB has been trading within a descending triangle pattern on its one-day chart, reflecting prevalent bearish trends. A critical support level lies at $0.68, and breaching this level could intensify the downtrend.
The negative Chaikin Money Flow (CMF) value of -0.15 suggests increasing outflows from ARB due to selling pressure, reinforcing the bearish sentiment in the market.
However, the declining Average Directional Index (ADX) indicates a weakening bearish trend, hinting at a possible price recovery. With continued whale accumulation and network strength, buyers stepping in could trigger a robust bullish rally for ARB.
On the derivatives front, traders are positioning themselves for further gains as reflected in ARB’s slightly higher funding rates in the positive region. Despite this, a breach of support at $0.68 could lead to a downward spiral, amplifying selling activity and driving prices lower.