- The Data Nerd revealed in a tweet today that whales and market makers sold more than 30 million ARB over the past 24 hours.
- Further analysis indicated that 7 whales sold 20.41 million ARB at a 33.67% loss.
- Meanwhile, a medium-term bullish chart pattern had formed on ARB’s daily chart.
The Twitter user The Data Nerd revealed in a tweet earlier today that whales and market makers dumped more than 30 million Arbitrum (ARB) tokens throughout the past 24 hours. According to the post, on-chain data reveals that 7 whales sold 20.41 million ARB at a 33.67% loss.
Meanwhile, Wintermute Trading deposited 8.35 million ARB, estimated to be worth $6.44 million, to a centralized exchange over the past 24 hours. Despite offloading some of its ARB, the market making company still holds 36.6 million tokens, according to the post. The recent ARB transactions resulted in the altcoin’s price dropping as much as 8%.
At press time, however, CoinMarketCap indicated that ARB’s price had recovered slightly since its steep drop. Nonetheless, the cryptocurrency’s price was still down 7.82%. Consequently, ARB was changing hands at $0.7744. This 24-hour decrease in ARB’s value forced its weekly performance further into the red zone, taking it down to 13.17% as a result.
From a technical perspective, the daily chart of ARB showed the formation of a falling wedge pattern. This indicates the possibility of the altcoin’s price breaking out to the upside in the coming weeks.
The pattern emerged after ARB’s price dropped below a critical support level at $0.8980 in the past 72 hours, exposing the cryptocurrency to the risk of falling back to its initial listing price within the next two weeks. In the short term, ARB’s price may continue to decline before potentially making an upward move.
Adding credibility to this short-term bearish view is the recent occurrence of a significant bearish technical flag on ARB’s daily chart. In the last 48 hours, the daily Moving Average Convergence Divergence (MACD) line crossed below the MACD Signal line, indicating a shift in momentum favoring sellers.
This could lead to a decrease in ARB’s price in the coming days. Additionally, the 9-day Exponential Moving Average (EMA) line is positioned below the 20-day EMA line, further supporting the idea of a potential drop in ARB’s price.
However, if the chart pattern is confirmed before ARB’s price reaches the wedge’s apex, there may be an attempt to reclaim the $0.8980 support level. Subsequently, if a daily candle closes above this level, it could be followed by another daily close above the next resistance level at $1.0605.
At this point, risk-averse investors might consider entering a medium-term long position for ARB. This potential increase in buying activity could drive the altcoin above the $1.3490 barrier before it aims to establish a new all-time high (ATH) surpassing $1.82.
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