- Wallets holding more than 1,000 coins dropped in the last week.
- The derivatives market was bearish on ARB at press time.
Arbitrum [ARB] rose 2.65% in the last 24 hours, reviving some optimism in what was a rather disappointing week for the layer-2 (L2) token.
As of this writing, ARB was exchanging hands at $1.66, down 2.19% over the week, according to CoinMarketCap.
ARB continues to battle selling pressure
The primary bearish catalyst was the influx of over a billion ARB tokens into circulation. ARB was trading at $1.9 prior to the unlock event.
However, profit-booking by traders who received fresh coins caused prices to plummet as low as $1.46.
According to a recent update by on-chain tracking platform Lookonchain, about four whale wallets were seen transferring 11.34 million ARB tokens to cryptocurrency exchange Binance.
The deposited amount was worth $18.82 million as per ARB’s prevailing market price.
A large movement of coins to exchanges triggers concerns among market participants because of the dominant belief that they would eventually be sold off.
However, these were not isolated incidents. Large transactions worth more than $100k remained high over the week, as per AMBCrypto’s analysis of Santiment’s data.
Most of these transactions were selling-dominated, as evidenced by a drop in the number of wallets holding more than 1,000 coins.
Source: Santiment
ARB’s on-chain activity cools down
Meanwhile, ARB’s key network activity indicators dropped sharply in the last 24 hours, having witnessed a healthy spike earlier in the week.
About 57,570 unique addresses were active on the 23rd of March, marking a drop of 25% from the weekly peak.
New addresses on the network plunged 25% from their weekly highs as well, showing a gradual waning of excitement surrounding the token.
Source: Santiment
Realistic or not, here’s ARB’s market cap in BTC’s terms
ARB to plunge further?
ARB’s downturn led derivatives traders to take bearish positions for it.
According to AMBCrypto’s analysis of Coinglass’ data, the Longs/Shorts ratio remained below 1, meaning that more traders were betting for further price declines in the days ahead.
Source: Coinglass
