Arbitrum price surges as DeFi whale address resumes ARB accumulation.
On June 2, the price of Arbitrum increased with the top-ranking cryptocurrencies following the United States Senate’s decision to raise the debt limit.
Why is the ARB price up today?
The price of Arbitrum (ARB) rose by 9% to an intraday high of $1.25, surpassing the crypto market’s overall gains of 1.5% in the same period.
Arbitrum’s outperformance coincided with some unusual buying activity associated with popular trader Andrew Kang’s crypto addresses.
- Bitcoin’s price rose and is now hovering over $27K as investors ignore the hot jobs data.
- Aleo blockchain, with a focus on privacy, receives a new wallet ahead of its mainnet launch.
- Stablecoins counter Operation Chokepoint.
Notably, on June 2, the co-founder of Mechanism Capital deposited $1 million worth of stablecoins into Arbitrum pools and spent over 20% of it to buy RDNT, the native token of decentralized finance lending platform Radiant Capital.
Later, Kang exchanged his newly bought and existing RDNT reserves for $867,000 worth of ARB. He then deposited the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC), according to data resource Lookonchain.
The platform noted:
“Seems like Andrew Kang is using leverage to go long $ARB on @RDNTCapital. Buy $ARB → Deposit $ARB → Borrow $USDC → Buy $ARB.”
Is the ARB rally sustainable?
Lookonchain revealed that an anonymous whale deposited $1.5 million worth of ARB to the OKX exchange, simultaneous to Kang’s abovementioned transfers.
Whale”0xf59b” finally waited for the rise of $ARB and deposited 1.2M $ARB ($1.5M) into #OKX 30 minutes ago. He withdrew 1.2M $ARB from #OKX on May 8th, and the buying price may be around $1.2. https://t.co/cJReZfg007 pic.twitter.com/jFwBRtPUpK
— Lookonchain (@lookonchain) June 2, 2023
Typically, investors deposit tokens to crypto exchanges for selling, which raises ARB’s pullback possibilities in the coming days if its demand drops. Interestingly, the token’s technical setup on the daily chart suggests the same.
Related: Arbitrum-based Jimbos Protocol hacked, losing $7.5M in Ether
Notably, ARB has printed what appears to be a bear flag, confirmed by the price consolidating between two rising, parallel trendlines, after a strong move downward. As a rule, a bear flag resolves after the price breaks below the lower trendline and falls by as much as the previous downtrend’s height.
That puts ARB on the road to $0.95 in June, down circa 20% from current price levels.
Conversely, a decisive breakout above the flag’s upper trendline will likely invalidate the bearish outlook, setting the Arbitrum token on the course toward $1.35, a resistance level from the March to May 2023 session.
