thecoinrepublic.com
- 1 ARB Coin Price: The bulls have been unusually active since the start of September.
- 2 The Relative Strength Index is in the neutral zone.
- 3 The current price is trading near a support level, see the price prediction below.
Arbitrum coin (ARB/USD) has been on an uptrend since September this year. According to Token Unlocks, in March of next year, the native digital asset of Ethereum’s layer 2 scaling solution, Arbitrum, will begin a four-year phased unfreezing process, which will release more than $1 Billion worth of ARB tokens.
The Reason for Bullish Rally
Around mid-March, the protocol was created to provide smart contract capabilities that are both scalable and low-cost with a release of 1.11 billion ARB tokens worth $1.24 Billion. This release accounts for 87% of the token’s total circulation supply of 1.275 Billion, while more than 5 billion ARB tokens remain locked at the time of writing.
Cryptocurrencies that have been frozen to prevent early investors or project team members from selling in large numbers can be released through staggered unlocks. The Cliff unlock method involves unfreezing a specific number of tokens right after a predefined time frame. This is done with unfreezing occurring in a linear schedule after that.
A short-term Problem Arises With the Unlock
During a cryptocurrency unlocking event, it can decrease liquidity and negatively impact the price. According to research conducted by The Tie, unlocks that exceed 100% of the average daily trading volume often have a significant downward effect on the token’s value for a short time.
The community will aid in the distribution of 100,000 ARB to Arbinauts who have actively contributed to the governance and processes of the Arbitrum DAO in The Arbitrum Citizens Retrofunding Round #1.
Prediction of ARB Coin Price
At press time, the ARB coin price was trading at $1.02. The bulls have seen a short-term fall after the bears reclaimed the resistance level of $1.18. However, the stock is still on an uptrend as the immediate support level is near the trendline. Therefore, the bulls can likely gain control if they can claim the support level of $0.983.
The RSI is in the neutral zone while the 150-day and 50-day EMAs are just below the current market price, indicating an uptrend. This suggests the ARB coin price prediction is bullish for the short-term, subjective of any related news in the market. The price target for the ARB coin is at $1.21
Conclusion
Arbitrum coin (ARB/USD) has been on an uptrend for the past 2 months. The community will aid in the distribution of 100,000 ARB to Arbinauts who have actively contributed in a specific process. The ARB coin price is near a support level and the predictions are bullish.
Technical Levels
- Support Levels: $0.983 and $0.797
- Resistance Levels: $1.18 and $1.33
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.