On June 2, the price of Arbitrum (ARB) experienced a 9% increase to reach an intraday high of $1.25. The rise in price was higher than the overall gains of 1.5% in the crypto market. This increase in price was attributed to the US Senate’s decision to raise the debt limit.

Andrew Kang’s Crypto Investments

Andrew Kang, a popular trader and co-founder of Mechanism Capital, made significant investments in ARB on June 2. He deposited $1 million worth of stablecoins into Arbitrum pools and spent over 20% of it buying RDNT, the native token of Radiant Capital, a decentralized finance lending platform. Kang later exchanged his newly purchased 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).

Anonymous Whale’s Investment in ARB

On the same day, an anonymous whale deposited $1.5 million worth of ARB to the OKX exchange. It is common for investors to deposit tokens to crypto exchanges to sell them, which raises ARB’s pullback possibilities in the coming days if its demand drops.

Technical Setup and Future Outlook for ARB

The technical setup for ARB on the daily chart suggests that the token has printed a bear flag. This is confirmed by the price consolidating between two rising, parallel trendlines after a strong move downward. A bear flag usually resolves after the price breaks below the lower trendline and falls by as much as the previous downtrend’s height. This puts ARB on the road to $0.95 in June, down roughly 20% from its current price levels.

However, if the price of ARB breaks out above the flag’s upper trendline, it will likely invalidate the bearish outlook and set the token on the course towards $1.35, a resistance level from the March to May 2023 session.

Analysis

Articles You May Like

DeeLance: Revolutionizing the Freelance Industry with a Metaverse
Bitcoin Network Faces Backlog with Overwhelming Number of Unconfirmed Transactions
Crypto Entrepreneur Accuses Huobi Exchange Founder’s Brother of Profiting from Free Tokens
A Look at the Current State of Arkham Intelligence’s $ARKM and the Exciting Potential of Launchpad XYZ

Leave a Reply

Your email address will not be published. Required fields are marked *