Arbitrum (ARB) has experienced a robust price rally, reaching $0.95, reflecting a 25% gain over the last 10 days. This rally is driven by increased demand from crypto whales, with millionaire crypto whale wallets accumulating a significant amount of ARB between October 23 and November 1, adding 20 million ARB to their holdings.
Whale demand is a key driving factor in the ongoing rally, and when whales continue to accumulate during a rally, it suggests confidence in further price gains. The value of the 20 million ARB acquired by whales during the past week is approximately $19 million, further bolstering confidence among retail investors.
Another positive sign is the increase in ARB Mean Coin Age, which has been on an upward trend since the price dipped below $1 on August 23. The Mean Coin Age measures how long ARB tokens in circulation have remained untouched in their current wallets. The persistent increase in Mean Coin Age indicates that long-term holders are not moving their coins, reflecting their confidence in the asset’s potential.
However, while the overall sentiment is bullish, historical data suggests that the $1 resistance level may pose a challenge. Global In/Out of the Money data shows that $1 is a significant obstacle for ARB prices, with 56,490 addresses holding 1.9 billion ARB purchased at a minimum price of $1.04. Closing out these positions prematurely could trigger a price correction.
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On the other hand, if whales continue to accumulate ARB, the price rally could extend to around $1.50. A potential bearish scenario would be if ARB’s price dips below $0.80, with initial support expected around $0.86.
As with any financial market, cryptocurrency prices can be influenced by various factors, and investors should exercise caution and conduct their own research when considering investments in digital assets.
