Abitrum captured the second place on CoinGecko platform’s trending list. It was only second to the Grass, a decentralized network sharing platform. Arbitrum is a roll-up on the Ethereum chain, which stacks together the transactions and processes them off-chain and hands over the processed data as a single transaction.
During the past week, there was hardly any movement in ARB prices as the token fluctuated in a tight space between $0.30 and $0.38. During the past week, the bears were so strong that the prices were barely able to hold above the weekly opening market price. At the time of publication, ARB is trading at $0.32 after gaining just 2.5% within the last week. The very lackadaisical drop of 2% in the trading volume also tells that there’s nothing much happening in ARB. If that’s the case, then what could be the factor that made ARB rank second on the trending list? As we delved deeper into the roadmap, we found out that a token unlock was around the corner for ARB.
Only July 15, the Artbitrum will unlock a few tokens, and the unlocked tokens will hit 43.91% while the unlocked circulating supply will reach 4.39 billion.
According to Coinglass, the Open Interest (OI) in the futures market had been decreasing drastically before it started to consolidate. The OI shows the number of open futures contracts, which shows that the market is disengaged at the moment.
Even in the spot market, the inflow has been reducing, as the prices keep decreasing. It could be that the traders are waiting for the falling prices to hit the floor to enter the market and maximize on the gains. Or may be they are waiting for the token unlock, which when the circulation supply increases will further the dampen the prices, letting investor buy at an cheaper price.
ARB bulls turn around bearish trend
Source: Tradingview
On the four hour chart, Arbitrum was on a downtrend making lower lows and lower highs since May. However, this bearish pattern ended recently when the bulls took over the market. Just about a week ago, the bulls stepped in and stopped ARB’s lows further falling. Not only did the bulls stop ARB from losing value, they even pushed the prices higher making higher lows.
Despite this push, ARB has crashed below the 200-day EMA and is being supported by the trendline as shown in the chart above. With the token unlock to be released there could be a positive sentiment that could spread across the ARB community and the investors could step and buy more ARB.
Provided the investors come to ARB’s rescue, the prices may reach $0.37 which is the immediate resistance. Adding to the bullish sentiment, the 50-day EMA is approaching the 200-day EMA from below, and if these two intersect, there could be a Golden cross (bullish trend) and ARB could even reach $0.42.
