Are Arbitrum whales stockpiling? Here’s the reality
- A whale recently bought ARB worth a million dollars from FalconX.
- ARB’s price dropped by nearly 1%, and market indicators were bearish.
Arbitrum [ARB] has been seeing quite some traction from the whales as they increased their holding. Generally, an accumulation from whales reflects the big players’ confidence in an asset.
Realistic or not, here’s ARB market cap in BTC’s terms
Therefore, considering the recent whale movement, ARB’s chances of registering a price uptick seemed likely to happen in the coming days.
Are whales actually buying Arbitrum?
Lookonchain’s recent tweet highlighted a whale’s activity, which suggested that it was increasing its accumulation. As per the tweet, a whale received 1.19 million ARB, worth over $1 million, from FalconX.
— Lookonchain (@lookonchain) September 23, 2023
Though this indicated that whales were stockpiling, the reality was a bit different. A look at Santiment’s chart revealed that it was not the whales who were buying, but the fish and shrimp who increased their holding.
This fact was evident from the rise in the number of addresses with a balance of ARB. On the other hand, ARB addresses with balances greater than 10 ARB remained relatively flat.
In fact, whale activity around the token was low, as evident from the number of whale transactions over the last week.
Apart from whale activity, several other metrics were also not in the token’s favor. For instance, its MVRV ratio plummeted sharply last week. Its daily trading volume dropped, signaling less interest from investors in trading the token.
Moreover, Arbitrium’s 1-week price volatility also dropped, which decreased the chances of a sudden northbound price movement.
LunarCrush’s data revealed that the market’s confidence in ARB was also low, as bullish sentiment around the token dropped by 30% last week. According to CoinMarketCap, ARB was down by nearly 1% in the last 24 hours.
At press time, it was trading at $0.8337 with a market capitalization of over $1 billion, making it the 40th largest crypto.
How much are 1,10,100 ARBs worth today?
What to expect from Arbitrum?
Several market indicators also supported the bears. For example, ARB’s Money Flow Index (MFI) and Relative Strength Index (RSI) remained under the neutral mark. Arbitrum’s Chaikin Money Flow (CMF) registered a downtick.
Regardless, the MACD remained in buyers’ favor as it displayed a bullish crossover on 18 September.