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Arkham’s ARKM token witnessed a drastic 20% decline following controversial token transfers. This event sparked widespread debate in the cryptocurrency community.
Arkham is trying to address the market concerns while the ARKM token tests critical support.
Why Arkham’s Transactions Gained Crypto Community’s Attention
Nansen, a competitor, reported that Arkham moved substantial ARKM amounts, over 25.2 million tokens valued at more than $56 million, to unidentified wallets and Binance. This revelation raised concerns about transparency and intent.
In response, Arkham addressed the situation on April 9. They clarified that these transfers aligned with their tokenomics, involving unlocked tokens. Despite these assurances, the market reacted negatively, leading to a significant price drop for ARKM.
“Two of our competitors are spreading false rumors about ARKM movements in an attempt to create fear, uncertainty, and doubt (FUD),” Arkham stated.
Read more: What Is FUD? Exploring Fear, Uncertainty, and Doubt
From a technical standpoint, ARKM’s price has been declining since its peak in March. Before the controversy, the token tested a crucial support trendline from late February.
However, it breached this support on April 3, accelerating the price decline. It later retested the trendline, which acted as a resistance on April 8. Currently, ARKM is testing a new support level at approximately $1.93.
If Arkham cannot sustain this support, technical analysis suggests a further 26% price drop to $1.43.
This potential decline highlights the precarious position of ARKM in the market. It also highlights the broader implications of market sentiment and transparency issues.
Arkham’s use of artificial intelligence has garnered attention, leading to investment from Binance Labs last November. Its Arkham Intel Exchange is a platform that facilitates the exchange of blockchain intelligence. Here, users can monetize their insights through the “Intel-to-Earn” model, with ARKM transactions central to this ecosystem.
Read more: How To Make Money With Intel-To-Earn on Arkham Intelligence
ARKM had a spectacular uptrend, surging over 400% since August 2023.