- Whales continued to buy ARB despite losses.
- The price movement remained stable. Proposal activity remained high.
Arbitration [ARB] was one of the most successful layer 2 solutions in 2023. Despite the protocol showing positive growth over the past year, the ARB token had both ups and downs in its movement.
Realistic or not, here is ARB’s market cap in BTC terms
Whales stay put
According to the information from lookonchain, a large Ethereum [ETH] holder previously lost 456 ETH, worth $1.3 million, by trading ARB.
However, recently the same whale decided to reinvest by spending 1,433 ETH, worth $2.62 million, on purchasing 2.51 million ARB tokens priced at $1.04 just 7 hours ago.
Despite losing 456 $ETH ($1.3 million) on $ARB previously the whale spent 1,433 $ETH ($2.62 million) to buy 2.51 million $ARB for $1.04 again 7 hours ago.https://t.co/GMrR6pm6x9 pic.twitter.com/P91mrLGwQ7
— Lookonchain (@lookonchain) November 4, 2023
The whale’s $2.62 million reinvestment in ARB suggested renewed confidence in the token. This could indicate positive sentiment around ARB’s future.
When whales show interest in a cryptocurrency, it often influences other traders, leading to increased buying activity. This can drive up the price of the token. Increasing whale interest in ARB could lead to more investors following suit, potentially driving up demand and price.
On the other hand, increased interest in the whale could also lead to greater volatility. This means that the price of ARB can experience rapid fluctuations, making it a riskier investment.
Whales have the power to manipulate prices by buying or selling large quantities. This could create uncertainty in the market and possibly lead to panic selling by other investors.
State ARB
Over the past month, ARB’s price has increased by 9.08%. The price had shown multiple higher highs and multiple higher lows during this period, creating a bullish trend. At the time of writing, ARB was trading at $1.0802.
The CMF for ARB was 0.12. This implied that the money flow was with the buyers at the time of writing. The RSI stood at 62.51, suggesting that price momentum was in favor of the bulls.
Source; Trading view
The Arbitrum board and proposals could also help to improve Arbitrum. A recent proposal suggested funding a group led by Blockworks Research, Gauntlet and Trail of Bits to support the community’s ideas for twelve months.
Is your portfolio green? View the ARB Profit Calculator
The Arbitrum Coalition, consisting of Blockworks Research, Gauntlet and Trail of Bits, will help bring ideas from the forum to life. They will provide resources for research, coordination and risk assessment, making it easier for the DAO to make informed decisions.
The goal is to accelerate decision-making and help the community realize its visions, as the forum often lacks the necessary research and coordination. This will help DAO participants make more informed choices.