Arbitrum freezes $30M in Binance hack-linked funds as ARB falls 4.5%
ARB's price action was bearish in the short term and could sink to $0.141 and $0.131 in the coming days.
Arbitrum [ARB] was down 4.5% in the past 24 hours, following a market-wide sell-off as Bitcoin [BTC] prices slipped below $77k once again.
The ARB price slide below the $0.162 local low was a blow for swing traders and heralded further losses. The MACD was on the verge of a bearish crossover just above the zero line on the weekly chart.
However, like the swing structure, the OBV has also been trending higher in recent months. Barring a massive sell-off, ARB prices staying above $0.11 is enough to keep long-term investors’ bias comfortably bullish.
Frozen ARB reopens decentralization discussion
The Arbitrum Security Council froze 8,425 Ethereum [ETH] and 74.555 million ARB, worth $30 million, on the 30th of October. The Security Council voted to execute an emergency action that moved the funds out of an address that was identified in the Binance exploit.
The network stressed that no other users or applications were impacted and detailed how their technical approach upgraded the Inbox Contract to add a new function.
This function imitated the structure of a standard cross-chain transaction with the ability to impersonate the transaction sender.
A similar technical approach was used in the aftermath of the KelpDAO exploit in April, when the Council moved 30,766 ETH worth $71 million back then.
The actions, though necessary, raised debate about the true nature of Arbitrum’s claim to decentralization.
What’s next for ARB price trends?
The 1-day swing structure was bullish, anchored by the $0.131 low from which the October rally originated. Yet, the MACD was in a slump, while the OBV moved listlessly sideways and lacked a trend.
It is likely that the altcoin would dip lower to sweep the $0.145 zone. Whether it can recover or continue its weekly timeframe retracement toward $0.141 and $0.110 remains to be seen.
Final Summary
- The Arbitrum Security Council froze $30 million worth of ETH and ARB tokens. Now, only an Arbitrum DAO governance vote can move them.
- The altcoin’s price action was bearish in the short term and could sink to $0.141 and $0.131 in the coming days.
