Multi-Sig Wallet Moves $25M ARB to Coinbase Before Unlock – What Next for Arbitrum Price?
Arbitrum on-chain data shows an inflow of tokens to exchanges. Is ARB ready for another sell-of?
Key Takeaways
- ARB will unlock 3.38 million tokens on July 25.
- Whales have transferred 25 million ARB to Coinbase.
- ARB could spark a potential downtrend after its recent surge.
Arbitrum is set to unlock 3.38 million ARB tokens between July 24 and July 31, 2024, equivalent to 0.1% of the circulating supply. This event is part of a scheduled vesting process, including allocations for the team, investors, and the Arbitrum ecosystem.
The scheduled unlock has prompted some investors to transfer their ARB holdings to exchanges, potentially increasing selling pressure. With the introduction of new tokens into circulation and a rising inflow of ARB to exchanges, is the price of ARB set for a downturn?
Multi-Sig Wallet Transfers $25M ARB to Coinbase
Arbitrum, an Ethereum layer-two scaling solution, recently experienced a notable influx of ARB tokens. According to Arkham Intelligence data , a multi-signature wallet associated with Arbitrum transferred 25 million ARB tokens worth around $20.13 million to Coinbase.
The tokens were redistributed to six different wallets, possibly for risk management or liquidity purposes. This transaction could significantly impact the ARB market, especially as it coincides with an upcoming token unlock event on July 25.
The number of whale transactions exceeding $100,000 in ARB increased from July 22, peaking at 26,000 on July 23. Additionally, there was a notable spike in transactions from whales holding over $1 million in ARB, reaching a high of 8 transactions on the same day.
ARB Price Analysis
On Jan. 12, 2024, ARB reached its all-time high of $2.42 before entering a bearish cycle. Although there was an initial attempt to recover its previous peak, the price only managed to reach a slightly lower high of $2.27 on March 8, beginning its prolonged downtrend.
By July 5, ARB reached a low of $0.56, its lowest point since market release. However, this was quickly followed by a recovery, with ARB breaking above a descending resistance line and forming an ascending triangle pattern. Despite this upward movement, technical indicators like the RSI and MACD on the 4-hour chart show a bearish divergence.
Looking ahead, there are two possible scenarios: the ascending triangle could either signal the beginning of a new uptrend or be a temporary corrective move before ARB continues its downward trajectory. In the short term, a downtrend is anticipated, with its strength and depth providing further clarity on the market’s direction.
In a bullish scenario, ARB should find support above $0.60, establishing its first higher low, which would indicate stronger buying interest at higher levels. Conversely, if the price drops below this support, the likelihood of a deeper decline increases.
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