The crypto sphere is no stranger to explosive growth, and the latest contender garnering attention in the market is the Arbitrum token (ARB). With the DeFi sector currently gaining momentum following Ethereum’s successful breakout above $2K, layer 2 scaling solutions are becoming increasingly essential. Experts and altcoin traders are closely monitoring the ARB token price chart in anticipation of a massive price recovery as the network lost 1 million ARB tokens previously.
ARB Whales Are Rising Amid Uncertain Situations
In a contentious turn of events on April 15, the Arbitrum Improvement Proposal (AIP-1.05) – a bold initiative aiming to reclaim 700 million ARB tokens for the DAO Treasury – encountered an avalanche of disapproval. The proposal sought to reverse the controversial move by Arbitrum’s Foundation, which unilaterally transferred a staggering $1 billion in governance tokens to its coffers without obtaining the green light from the DAO.
In a recent report from Dune Analytics, Arbitrum (ARB) reached a significant milestone on April 17, with the number of wallet addresses exceeding 5 million. Alongside this impressive figure, the ARB ecosystem now boasts over 4 million active accounts and has processed nearly 200 million transactions since its inception.
This rapid expansion can be attributed to a combination of factors, including Arbitrum’s robust development cycle and the buzz generated by its March 23 airdrop event. During the airdrop, a staggering 1.275 billion ARB tokens were distributed among 625,143 eligible addresses, further propelling interest in the platform.
During the week of April 10-17, on-chain data analyst Lookonchain revealed that 23 whale wallets held over $1 million worth of Arbitrum (ARB) tokens. According to data, three whale accounts offloaded more than 22 million ARB tokens, while nine others acquired over 12 million tokens collectively.
Is ARB Price On The Verge Of A Massive Rise?
ARB price witnessed a massive spike in buying pressure near the weekly resistance level of $1.7, resulting in a smooth upward movement above its 23.6% Fib level. The token is currently trading way above the EMA-20 trend line, hinting at bullish domination in the price chart.
The RSI trend line has significantly surged above its midline and is trading at the 65-level, signifying a buying zone for the ARB token. However, the RSI faced a slight rejection near the overbought region, initiating a downward correction for the ARB price to its daily low. Despite this, the SMA-14 remains stable, which may push the ARB token far above its triangle pattern.
As of writing, the ARB token trades at $1.77, gaining nearly 10% in the last 24 hours. If the ARB token continues its current bullish momentum and maintains its price above $1.9, there is a potential for a skyrocketing price trend to $2.5.