The crypto sphere is no stranger to explosive growth, and the latest competitor to turn heads in the market is the Arbitrum (ARB) token. With the DeFi sector currently gaining momentum following Ethereum’s successful breakout above $2K, Layer 2 scaling solutions are becoming more and more essential. Altcoin experts and traders are closely monitoring the ARB token price chart in anticipation of a massive price rally as the network lost 1 million ARB tokens previously.
ARB whales are increasing amid uncertain situations
In a controversial turn of events on April 15, the Arbitrum Improvement Proposal (AIP-1.05), a bold initiative aiming to recover 700 million ARB tokens for the DAO Treasury, met with an avalanche of disapproval. The proposal sought to reverse the controversial move by the Arbitrum Foundation, which unilaterally transferred a staggering $1 billion worth of government tokens into its coffers without getting 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 surpassing 5 million. Adding to this impressive number, the ARB ecosystem now has more than 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 strong 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 fueling interest in the platform.
During the week of April 10-17, on-chain data analyst Lookonchain revealed that 23 whale wallets held more than $1 million worth of Arbitrum (ARB) tokens. According to the data, three whale accounts downloaded more than 22 million ARB tokens, while nine others acquired more than 12 million tokens collectively.
Is the ARB price on the verge of a massive increase?
ARB price witnessed a massive increase in buying pressure near the $1.7 weekly resistance level, resulting in a smooth upward move above its 23.6% Fibonacci level. The token is currently trading well above the EMA-20 trend line, which suggests bullish dominance on the price chart.
The RSI trend line has risen significantly above its mid-line and is trading at the 65 level, which signifies a buy zone for the ARB token. However, the RSI faced mild rejection near the overbought region, initiating a downward correction of the ARB price to its daily low. Despite this, the SMA-14 is holding steady, which may push the ARB token well above its triangle pattern.
At the time of writing, the ARB token is trading at $1.77, gaining almost 10% in the last 24 hours. If the ARB token continues its current bullish momentum and sustains its price above $1.9, there is a chance that the price trend will spike to $2.5.
This post Arbitrum Token Ready for a Spectacular Wave! Is the return of ARB Price just around the corner?
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