Recent data from a leading blockchain analytics platform, Lookonchain, has cast a spotlight on a sudden and significant move in the ARB token market. Within a span of 30 hours, seven high-value investors, commonly referred to as whales, chose to divest their holdings in the ARB token. The magnitude of this action is striking — the whales collectively sold assets that amounted to a staggering 20.41 million $ARB, equivalent to $16.05 million.
Among the sellers, one investor stands out for unloading more than $3.2 million worth of ARB tokens. A deeper look into their transaction history shows that the original purchase was made for roughly $4.6 million. This represents a negative 29% ROI, indicating a severe downturn in their expected profits. Another key player followed a similar trajectory, disposing of $2.6 million in ARB tokens and losing over $2 million. Their initial investment hovered around the $4.7 million mark.
These seven whales have undoubtedly influenced market sentiment, sparking debates among investors and analysts alike. The impact of this divestment activity could range from triggering a bearish trend to creating buying opportunities for smaller investors looking to enter the market at a lower valuation.
Over the past month, the price of the native token of the layer-2 scaling solution for the Ethereum blockchain has experienced a precipitous decline, falling by more than 30 percent from its previous level, with selling pressure intensifying in recent days. This could indicate a bearish short-term outlook for the asset as market players take a more cautious approach.
At the time of writing, ARB/USD is trading at $0.7733, down 0.40 percent from the previous 24 hours. The bearish pressure is mild, with bullish trends slowly emerging, and if the downward trend continues, the ARB token is likely to hold its ground and could hit support at $0.7400. However, if bulls return to the market, a reversal of fortune could be seen.
The current market capitalization of the ARB token is $983 million, ranking position 42 in the list of top cryptocurrencies. The current market cap is down by 8.27% from the previous trading day, indicating that the asset is still under pressure. However, the trading volume is still fairly high, with $319 million ARB tokens and up by more than 127% from the previous 24 hours. This suggests there are still enough buyers and sellers to sustain trading activities.
To sum up, the news of seven major investors divesting their holdings in ARB tokens has created a stir in the cryptocurrency markets. The magnitude of divestment and the losses these whales incur signify a cautious outlook for the asset, with further valuation drops likely. However, buyers might act in the market and bring prices back to their previous level.
