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ARB’s Week Of Gains May Be Followed By A Drop To $0.746

Published 22/09/2023, 15:03
© Reuters.  ARB’s Week Of Gains May Be Followed By A Drop To $0.746
ARB
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  • Lookonchain data indicated that a whale withdrew 1.15 million ARB from Binance.
  • Over the past week, ARB’s price climbed by 3+%, which was likely due to a flurry of whale activity over the past few days.
  • Technical indicators suggested that ARB could see its price drop in the days to come.

Arbitrum (ARB) has proven itself to be a resilient cryptocurrency amidst the DeFi turbulence in the 2023 market. Data from the on-chain analytics platform Lookonchain indicates that this is largely fueled by the actions of whales and ARB supporters.

According to an X post shared by Lookonchain earlier today, a prominent whale has given a major vote of confidence in ARB. In the last 48 hours, this whale withdrew 1.15 million ARB, valued at approximately $952,000, from the Binance exchange.

ARB is quickly establishing a prominent position in the field of layer-2 blockchain technology. This is emphasised by ARB’s remarkable Total Value Locked (TVL) of $5.6 billion, surpassing its rivals Optimism, Mantle and ImmutableX.

The past seven days have been successful for the altcoin as CoinMarketCap indicated that ARB saw its price climb by more than 3% during this time. However, ARB’s price did end up slipping by 0.48% in the past 24 hours, which left it trading at $0.8345. This was likely due to a flurry of market activity by ARB whales in the past few days.

Daily chart for ARB/USDT (Source: TradingView)

However, technical indicators suggested that ARB could see its price drop in the days to come. This was after the altcoin failed to break out of a medium-term descending price channel over the past 72 hours, causing ARB’s price to retrace to below the 9-day EMA line, where it continued to trade at press time.

If ARB does not close today’s daily candle above this technical indicator, which was situated at $0.8351, then it will be at risk of correcting to the next key support level at $0.7460. Conversely, a daily candle close above this EMA line today could invalidate this bearish thesis.

A daily candle close above the 9-day EMA line may be followed by ARB’s price attempting to overcome the barrier at $0.8720, which was also confluent with the upper limit of the negative price channel. Subsequently, the altcoin’s price may have the support needed to rise to $1.0395 in the following week.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post ARB’s Week Of Gains May Be Followed By A Drop To $0.746 appeared first on Coin Edition.

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