- Whales continued to buy ARB despite making a loss.
- Price movement remained steady. Activity on proposals remained high.
Arbitrum [ARB] was one of the most successful layer 2 solutions in 2023. Despite the protocol showing positive growth over the last year, the ARB token saw both ups and downs in its movement.
Realistic or not, here’s ARB’s market cap in BTC terms
Whales stay put
As per lookonchain’s information, a large Ethereum [ETH] holder previously lost 456 ETH, worth $1.3 million, trading ARB.
However, recently, the same whale decided to reinvest by spending 1,433 ETH, valued at $2.62 million, to purchase 2.51 million ARB tokens priced at $1.04, just 7 hours ago.
Despite losing 456 $ETH ($1.3M) on $ARB before, the whale spent 1,433 $ETH ($2.62M) to buy 2.51M $ARB at $1.04 again 7 hours ago.https://t.co/GMrR6pm6x9 pic.twitter.com/P91mrLGwQ7
— Lookonchain (@lookonchain) November 4, 2023
The whale’s reinvestment of $2.62 million in ARB suggested renewed confidence in the token. This could indicate positive sentiment around ARB’s future.
When whales show interest in a cryptocurrency, it often influences other traders, leading to increased buying activity. This can drive up the token’s price. A rising interest from whales in ARB might lead to more investors following suit, potentially driving up demand and price.
On the flip side, the whale’s increased interest could also lead to heightened volatility. This means ARB’s price might experience rapid fluctuations, making it a riskier investment.
Whales have the power to manipulate prices by buying or selling large quantities. This could create uncertainty in the market and potentially lead to panic selling by other investors.
State of ARB
Over the last month, the price of ARB has grown by 9.08%. The price had shown multiple higher highs and multiple higher lows during this period establishing a bullish trend. At press time, ARB was trading at $1.0802.
The CMF for ARB was 0.12. This implied that the money flow was with the buyers at the time of press. The RSI was at 62.51, which suggested that the price momentum was favoring the bulls.
Source; Trading View
The Arbitrum’s governance and proposals made could help Arbitrum to improve as well. A recent proposal suggested funding a group led by Blockworks Research, Gauntlet, and Trail of Bits to support the community’s ideas for 12 months.
Is your portfolio green? Check out the ARB Profit Calculator
The Arbitrum Coalition, consisting of Blockworks Research, Gauntlet, and Trail of Bits, will help bring ideas from the forum to life. They’ll provide resources for research, coordination, and risk assessment, making it easier for the DAO to make informed decisions.
The goal is to speed up decision-making and assist the community in realizing its visions, as the forum often lacks necessary research and coordination. This will help the DAO participants make better-informed choices.