- Around $56.5 million worth of ARB in unclaimed tokens were sent back to the project’s treasury.
- ARB may continue to move between $0.80 and $0.83 in the short term.
- If the OBV fails to rise, then ARB could drop to $0.79.
The Arbitrum (ARB) Foundation has ordered that the 69.44 million unclaimed ARB tokens be returned to the DAO’s treasury. The tokens represent what is left of Arbitrum’s decision to distribute rewards to its early users earlier in the year.
ARB Goes Back to the Initiators
In March, when Arbitrum’s Mainnet launched, the project allocated a sizable portion of the tokens to its Testnet users. Within the first hour of launch, over 42 million ARBs were claimed, and on the first day, users had claimed $120 million worth of the token.
Despite the impressive number, there was still about $56.5 million worth of ARB left unattended. For the Arbitrum Foundation, six months is enough to claim the tokens. Hence, the decision to take back the tokens to the treasury.
At press time, the DAO’s wallet had 3.95 billion ARB, valued at $2.92 billion. However, the decision seemed to have little effect on ARB. At the time of writing, the token’s value was $0.80. This was a 2.46% decrease in the last 24 hours, meaning there had been some sort of selling pressure within the said period.
Another Downside Is Likely
According to the ARB/USD 4-hour chart, bulls and bears seem to be in intense competition for market control. So, from the look of things, ARB is likely to consolidate between $0.80 and $0.83.
However, the Relative Strength Index (RSI) showed that ARB was weak. Therefore, there is a tendency for the price to fall below $0.80 since the RSI was 40.91. If there appears to be no buying momentum, ARB might find it difficult to rise to $0.83.
Should bulls neutralize bears’ presence, then the RSI may approach 50.00. Consequently, this could lead to ARB rising higher than projected. Another indicator to consider is the On Balance Volume (OBV).
At press time, the OBV was around the same spot it was on September 22. The OBV measures the negative and negative volume flow while identifying possible directions. Usually, a rising OBV could lead to a price increase, the same way a falling OBV could end up foreshadowing lower prices.
For ARB, the price may not tumble significantly. But as mentioned above, it could keep consolidating around $0.80 and $0.83.
ARB/USD 4-Hour Chart (Source: TradingView)
In conclusion, those eligible for the unclaimed tokens may no longer have access to it. Also, ARB’s next direction may remain undecided for the time being.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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