Arbitrum (ARB) Price Rally Continues as Whales Drive Demand
The price of Arbitrum (ARB) has surged by 25% in the past 10 days, reaching $0.95. This ongoing rally is largely fueled by increasing demand from crypto whales, as indicated by on-chain data. These large investors have been accumulating ARB tokens, with their holdings growing by 20 million ARB between October 23 and November 1. This accumulation wave, valued at approximately $19 million, is likely to boost confidence among retail investors.
Long-Term Holders Show Confidence in Arbitrum
Despite the rally, long-term holders of ARB tokens have not started selling their coins. The Mean Coin Age metric, which measures how long tokens have remained unmoved in wallets, has been steadily increasing since August. This indicates that long-term investors are confident in the future performance of ARB.
Resistance at $1 Could Pose a Challenge
While sentiment around Arbitrum remains bullish, historical data suggests that the $1 resistance level could be a significant obstacle for the price to overcome. The Global In/Out of the Money data confirms this prediction, showing that many addresses bought ARB at prices close to $1. If these positions are closed early, it could trigger a price correction. However, if whale investors continue to buy ARB, the price rally could extend to around $1.50.
Hot Take: ARB Price Could Face Resistance at $1 but May Reach $1.50
The ongoing rally in Arbitrum (ARB) has been driven by increasing demand from crypto whales, who have accumulated millions of ARB tokens. Long-term holders are holding onto their coins, indicating confidence in future price gains. However, the $1 resistance level could pose a challenge for ARB price. If whale investors continue to buy, the price rally could extend to $1.50. It remains to be seen how the market will react and whether ARB can surpass the $1 mark in the days ahead.
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