ARB Price Prepares for Liftoff as Arbitrum Dao Passes Key Staking Proposal
ARB price could have finished its long-lasting bearish phase, but is it ready to start a bullish one?
Key Takeaways
- Arbitrum DAO approves ARB staking with 91% community support.
- The staking initiative could boost ARB demand and market value.
- Successful staking could reverse ARB’s downtrend and drive growth.
In a resounding show of support, the Arbitrum DAO has greenlit a highly anticipated proposal to introduce ARB token staking, with a staggering 91% of over 25,000 participants voting in favor.
The initiative promises to revolutionize the ARB ecosystem by empowering holders to stake their tokens in exchange for a liquid staked token, stARB.
But what does this mean for the ARB price, which has been on a downward spiral since its all-time high of $2.40? With ARB slipping to $0.42, has ARB finally hit rock bottom?
Could this staking proposal be the catalyst that sparks a long-awaited bullish reversal?
A Game-Changing Proposal
The recent approval of the ARB staking proposal could be a game-changer for the token’s price. By introducing a liquid-staked ARB token (stARB), the ecosystem is poised to experience a significant increase in utility and engagement.
The staking mechanism is designed to provide holders with additional rewards through auto-compounding and re-staking options, as well as greater integration with DeFi applications.
This could also increase holder participation and influence within the Arbitrum ecosystem.
As the staking proposal gains traction, it’s likely to drive demand for ARB, pushing its market value upward as more participants seek to stake and actively delegate their tokens.
This, in turn, could create a self-reinforcing growth cycle as increased utility and engagement attract even more investors to the ecosystem.
Moreover, the staking proposal addresses concerns about ARB’s underperformance in value accrual and declining voter participation within the Arbitrum ecosystem.
By incentivizing active delegation and safeguarding against potential governance attacks, the proposal aims to strengthen the network’s security and governance.
If successful, the staking initiative could mark a turning point for ARB, reversing its recent underperformance and setting the stage for sustained growth.
As the ecosystem continues to evolve and mature, it’s likely that ARB will emerge as a more attractive and compelling investment opportunity driven by its enhanced utility, security, and governance.
ARB Price Analysis
Arbitrum’s price began its first bullish phase in October 2023, when it established a support plateau around $0.80. From there, it increased to $2.40 on Jan. 10, its all-time high.
The price experienced some weakness and fell sharply to $1.60 in January, which was the first move in a larger downtrend.
A continuous decline was seen with lower highs and lower lows, leading to its current of $0.44 on Aug. 5. Looking at the wave structure, this could have been the completion of a five-wave pattern from January.
The daily chart RSI fell to the oversold zone at 22% on Aug. 5, and MACD made a golden cross, signaling an uptrend on Aug. 11. As ARB approaches its significant descending resistance, a breakout above could provide a further confirmation of the staring uptrend.
We zoomed into the hourly chart and saw that rejection had occurred, leaving two scenarios ahead. Either we are seeing the first five-wave pattern in a more significant uptrend, or the rise from Aug. 5 was a three-wave one, leading to more downside.
The horizontal level at $0.52 is a pivot point for ARB between these scenarios. If the price finds support here and makes another higher high, it could confirm the bullishness behind the move and make a breakout above the descending trendline.
That said, if ARB’s price breaks below its current level, the cryptocurrency could be at risk of further decline, potentially testing support around $0.35.
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