Arbitrum (ARB) price reached $0.95 on Wednesday, bringing its gains over the last 10 days to 25%. On-chain analysis pinpoints key indicators that could propel ARB price past the $1 in the days ahead.
Arbitrum price rally has entered its second consecutive week, as bullish whale investors continue to pile on more buying pressure. With profits entering double-digits, can they hold out long enough for ARB price to reclaim $1?
Rising Whale Demand is a Major Driving Factor Behind the Ongoing Arbitrum Rally
Arbitrum price has started racing up the top gainers’ charts as the crypto market rally enters its second consecutive week. The Ethereum Layer-2 scaling protocol has attracted unusually high demand from crypto whales, according to recent on-chain data readings.
The chart below shows that millionaire crypto whales (wallets holding 1 million to 100 million ARB) have recently intensified their buying pressure. Between October 23 and November 1, they increased their cumulative holdings by 20 million ARB.
Whales Wallet Balance metric provides a snapshot of real-time movements in the number of tokens held by a group of large investors. Typically, when whales keep buying during a rally, it suggests that they are betting on further price gains.
Valued at the current market price of $0.95, the 20 million ARB whale accumulation in the past week is worth approximately $19 million. Considering how influential whales often are within a blockchain ecosystem, this large accumulation wave could shore up confidence among strategic retail investors.
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Long-Term Investors are Holding Out for More Profits
In further confirmation of the rising bullish sentiment, investors on the Arbitrum network appear to be holding their tokens longer despite the ongoing rally.
As depicted below, ARB Mean Coin Age has been in an upward trend since the price dipped below $1 on August 23. Since then, the Mean Coin Age on the Arbitrum network has increased by 105% to hit 354 on November 1.
In simple terms, the Mean Coin Age metric tracks how long ARB tokens in circulation have remained unmoved in their current wallets. Hence, the persistent increase in ARB Mean Coin Age observed above is a classic indication that most long-term holders have not started moving their coins yet.
However, it remains to be seen if a sell-off will begin once the Arbitrum price reaches the $1 mark. As observed around October 1.
ARB Price Prediction: The $1 Support Level is Vital
While the general sentiment surrounding Arbitrum price is mostly bullish, historical data trends suggest that the $1 resistance could prove daunting.
The Global In/Out of the Money data, which is an on-chain representation of current ARB holders’ historical buying trends, also confirms this prediction. It shows that the $1 resistance is the most significant obstacle above the currency ARB prices.
As depicted below, 56,490 addresses had bought 1.9 billion ARB at the minimum price of $1.04. If they close out their positions early, this could set off an instant Arbitrum price correction.
But if the whales keep buying Arbitrum, the price rally could reach the $1.50 range.
Alternatively, the bears could invalidate that prediction if the ARB price dips below the $0.80 mark. But in that case, the initial support wall around $0.86 will likely stand firm.
The chart above shows that 57,760 addresses currently hold 3.7 billion ARB bought at the maximum price of $0.86. If they keep HODLing, they will likely prevent a major Arbitrum price reversal.
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