👀 Arbitrum (ARB) Price Eyes Recovery as Whale Accumulation Sparks Hope
Arbitrum’s (ARB) price drop below $1 may have provided an opportunity that has not appeared for some time. As of this writing, the token’s price was $0.94, a 56.90% decrease in 90 days.
However, according to data found on-chain and the technical perspective, ARB may erase some of these losses.
🔸 Whales Are Buying Arbitrum Again
One metric fueling the bullish prediction is the action of whales. Whales are entities or individuals that hold a large amount of a token. Because of this large supply of tokens owned, whales can significantly influence market prices.
According to the on-chain analytic platform Santiment, addresses holding 100 million to 1 billion ARB tokens have accumulated more since June 5. For instance, the supply of this cohort was 27.19% on the aforementioned date.
However, the ratio has increased to 34.40. Specifically, whales purchased 251.79 million Arbitrum tokens on June 10. The difference in this supply indicates that Arbitrum’s price may begin a slow movement up the charts.
This time, the condition may be different. This is because of the concentration of Arbitrum’s large holders.
Data from IntoTheBlock shows that 88% of ARB holders are losing money at the current price, while only 4% of the total holders are making gains.
Furthermore, 83% of holders own the token in large numbers. The high concentration of ARB among whale addresses means that increased accumulation may drive higher prices.
On the other hand, a widespread sell-off by these addresses may cause a significant price increase. Considering the rise in buying pressure, ARB may approach the key resistance level that it reached on May 21.
From a technical point of view, the daily chart shows the Money Flow Index (MFI) reading dropping to 12.69. The MFI uses price and volume to measure the buying and selling pressure around a cryptocurrency.
