Lookonchain, a prominent cryptocurrency trader and technical analyst, shared intriguing observations about the recent price movements and developments related to $ARB. Their tweet offered perceptive analysis into the factors driving the recent trading activity and price fluctuations of $ARB.
According to Lookonchain, a “whale” has been actively buying $ARB, spending a total of 2,000 $ETH ($3.27 million) to acquire 3.64 million $ARB tokens at an average price of $0.9 since September 3.
This is not the whale’s first foray into $ARB; they previously spent 800 $ETH ($1.47 million) to buy 1.27 million $ARB on August 13, only to sell it at a loss of approximately $36,000 on August 16 via Binance.
ARB price is in the state of flux with only 1% increase last week. The coin is currently trading around $0.9 mark.
What Does a Large Purchase Mean for a Coin’s Price?
When a whale makes a large purchase of a particular cryptocurrency, several potential outcomes can affect the coin’s price:
- Immediate Price Surge: A large buy order can create upward pressure on the price, leading to an immediate surge. This is especially true for coins with lower liquidity.
- Increased Investor Confidence: The entry of a whale can be seen as a vote of confidence in the asset, attracting other investors and potentially driving the price higher over the medium to long term.
- Volatility: Large purchases can introduce volatility, as the market reacts to the new demand. This can result in short-term price fluctuations.
- Potential for Price Manipulation: Whales have the capacity to move the market significantly. If they decide to sell a large portion of their holdings, it could lead to a sharp decline in price.
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Show more +It’s worth noting that the whale in question had previously sold $ARB at a loss, indicating a level of unpredictability. Investors should exercise caution and conduct their own research before making any investment decisions.
For more details, you can check the whale’s transaction history on Debank.
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