After suffering from a weekend filled with uncertainty, Arbitrum (ARB) now appears to be in for a rebound despite rumors about its whale and supply still circulating. Over the past 24 hours, Arbitrum native token ARB has surged by nearly 10%.
Meanwhile, ARB has seen some large sales recorded on-chain, indicating that some investors are still frightened and panic selling their ARB tokens.
ARB Continues Rally, Why?
So far, ARB’s latest price action has happened to be a bullish move attributed to just three factors. Arkham Intelligence, a crypto analyst-focused platform, recently revealed data indicating that ARB whale activity in the past 7 days is now balanced.
According to the platform’s analysts, roughly 18 million ARB has been withdrawn from the exchange, slightly higher than the 12 million ARB deposited to exchanges over the weekend. Notably, withdrawing an asset from an exchange indicates a buy, as exchanges are where whales go to purchase large amounts of tokens.
In contrast, a large amount of deposit of an asset on an exchange may also indicate an upcoming selling pressure, as this is where most large investors go to sell off their holdings.
Another factor attributed to ARB’s latest price action is the to the Arbitrum ecosystem since the airdrop announcement. This can also indicate a strong buying power that benefits ARB’s value, as many investors may be accumulating the token.
In addition, despite the uncertainty in the Arbitrum market, the community has remained optimistic based on the history of other airdropped tokens. Following the launch of APT and OP, both tokens experienced a drastic fall after initially surging at the launch date. However, eventually APT and OP enjoyed a rally which has now put both tokens up by over 200% and 400% from their all-time low, respectively.
Arbitrum Surges Nearly 10% In The Last 24 Hours
After surviving a bearish trend over the weekend, ARB is in the green by 8.3% in the last 24 hours. The asset’s price has moved from trading as low as $1.10 during the weekend to trading above $1.20 at the time of writing, following its bullish trend from the beginning of the day.
ARB’s market cap has surged, aiding the token’s climb to rank number 39 in market capitalization among other cryptocurrencies in the global crypto market. In the past 3 days, nearly $5 billion has been added to the assets market capitalization as its market cap currently sits at $1.5 billion, up by more than 10% in the last 3 days.
Featured image from Unsplash, Chart from TradingView