Arbitrum Price Falls 35% Amid Token Unlock — What Next For ARB?
Arbitrum price falls by 35% amid the token unlock. Will it recover?
Key Takeaways
- Arbitrum released $2.2 billion worth of ARB, or 87.2% of supply.
- There were significant allocations for the team, advisors, and investors.
- ARB’s price fell over 35% since March 13 high.
On March 16, Arbitrum released $2.2 billion worth of ARB tokens. This release represents 87.2% of its total circulating supply, potentially reducing ARB’s market price.
Out of this, 673 million ARB tokens were allocated for the team and their advisors. Meanwhile, investors were allocated 438 million, according to information from TokenUnlocks .
Since its March 13 high of $2.26, the price of ARB has fallen by over 35%. It had a similar decline in January, so is has ARB concluded its corrective phase with the current one, or is it just beginning a more significant descending move?
Arbitrum (ARB) Price Analysis
On January 11, the price of Arbitrum hit an all-time high of nearly $2.50. After that, it has started a corrective phase, falling 36% to $1.55 on January 23. A recovery followed but to a lower high of $2.20 on March 8. It revisited this level on March 13.
Since then, ARB has made another 35% decrease to a low of $1.45.
It also fell below its horizontal zone’s lower level of $1.60 but is now testing it from the lower side. The four-hour chart RSI is oversold at 28%, indicating a potential recovery for ARB.
This move could still be its wave four correction, concluded by March 19’s low as its third sub-wave. However, in that case, the price should immediately move above $1.60 and prove there is strength behind the recovery.
The furthest it can go without invalidating a possibility of another higher high for its fifth wave is at $1.25. This is the presumed wave one ending point below which wave four cannot go in a five-wave pattern according to the rules of the Elliott Wave Theory.
The price already recovered by 8%, leaving a wick on the daily chart, but this is still ongoing. We need to wait for the daily candle close to be sure of the buyers’ determination. If the daily candle does close with a large wick, it would indicate the buyers’ interest. Meanwhile, a push above $1.60 would solidify the possibility of another upturn to the new all-time high.
However, if the daily candle does not close with a larger wick, ARB could be facing another 30% drop to the $1.25 area.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Arbitrum Faces $2.5 Billion Token Unlock: Will ARB Price Crash Following Supply Increase?
More Than $2 Billion ARB Unlocked On March 16 — Will Arbitrum Price Dump?
