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Arbitrum price reclaimed the $1.20 territory on June 6, after having fell to 2-week low of $1.10 48 hours earlier, on-chain analysis explores the key catalyst behind the ARB resurgence.
ARB Price Rebounds 7% in the 48-Hours, Ending 14-Day Losing Streak
Established in 2022, Arbitrum has quickly risen to prominence over the past two years, becoming one of the most widely adopted Ethereum Layer 2 (L2) scaling solutions. The ARB token’s price has experienced significant volatility in the past month.
Starting May 2024 with a strong performance, Arbitrum’s price surged by 31% between May 1 and May 21. However, the momentum was halted by the approval of the Ethereum ETF.
While new entrants shifted their focus to Ethereum markets, existing Arbitrum investors adopted a more cautious approach. Consequently, ARB experienced a swift 17% price correction from May 21, reaching a two-week low of $1.10 on June 4.
However, this week, increased optimism about the upcoming US Non-Farm Payrolls report and an anticipated Fed rate cut has sparked bullish activity in the crypto markets.
As illustrated in the chart, Arbitrum’s price has rebounded by 7% in the past 48 hours, briefly climbing above the $1.20 level as of June 6.
Whale Activity Up 68% in June 2024
Looking past the daily price charts, on-chain data indicates that recent fluctuations in whale investors’ activity might be fueling the ongoing Arbitrum recovery phase. As demand returns to the crypto markets this week, the outlook for Arbitrum’s short-term price prospects appears increasingly bearish.
IntoTheBlock’s Large Transactions trends, shown in the chart below, tracks the daily number of transactions on a crypto network that exceed $100,000. This metric offers insights into the level of whale demand a cryptocurrency has attracted over a specific period.
As of June 1, Arbitrum recorded only 129 whale transactions. However, demand from whale investors has surged significantly since then.
Over the next five days, whale activity steadily increased, culminating in 218 large transactions on June 5. This represents a 68% rise in whale demand for Arbitrum since the beginning of the month.
A sustained increase in whale transactions typically exerts upward pressure on the token’s price. The added liquidity from these transactions allows profit-takers to exit without disrupting the ARB price rally.
ARB Price Forecast: $1.50 Resistance at Risk
Historically, Arbitrum price has often faced strong resistance at the $1.20 level, but the 68% uptick in whale transactions means bulls could now target a rebound toward the $1.50 level.
Meanwhile, IntoTheBlock’s GIOM data, which matches all the current Arbitrum investors according to their buy-in prices, also supports this bullish stance.
As seen above, there’s a formidable resistance cluster of 100,900 ARB addresses that acquired 158.36 million ARB at an average price of $1.45. If Arbitrum whales keep buying and that sell-wall caves, ARB price could advance to new monthly peaks above the $1.50 milestone.
Conversely, if the market enters a prolonged correction phase, bears could target a major reversal below $1.