Arbitrum (ARB) Price Plummets 11% Following Major Unlock; Technicals Signal More Trouble Ahead for Holders
Arbitrum (ARB), the cryptocurrency powering the Arbitrum network, a prominent layer-2 scaling solution for Ethereum, has experienced a substantial price drop of 11% in the past 12 hours. This decline coincides with a market downturn and a significant token unlock event.
According to data shared by Spot On Chain, a popular on-chain analytics platform, six wallets that recently received ARB tokens from vesting contracts have deposited a staggering 8.95 million ARB tokens, valued at approximately $16.4 million, to the cryptocurrency exchange Binance. Notably, these wallets still hold a collective 32.95 million ARB tokens, worth around $56.7 million, raising concerns that they may continue offloading their holdings, potentially exerting further downward pressure on the token’s price.
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Show more +Technical Analysis: Further examination of the technical indicators reveals that the ARB price has broken below the crucial support level of $1.67. A daily close below this level could potentially trigger a continuation of the downtrend, with the next support levels projected at $1.46 and $1.25. If these levels are breached, the percentage decline from the current price could reach substantial levels.
The Relative Strength Index (RSI), a momentum indicator used to evaluate the strength or weakness of an asset’s price movement, is currently hovering around 33, approaching oversold territory. An oversold condition often signals that the selling pressure may be reaching exhaustion and could potentially lead to a price rebound.
However, it is important to note that the current bearish sentiment, exacerbated by the recent token unlock event and the broader market downturn, could continue to weigh on the ARB price in the short term.
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