On June 2, the price of Arbitrum jumped alongside the top-ranking cryptocurrencies after america Senate voted to raise the debt limit.
Why is the ARB price up at this time?
The price of Arbitrum (ARB) rose 9% to an intraday excessive of $1.25, beating the crypto market’s complete general positive factors of 1.5% in the identical interval.
Arbitrum’s outperformance coincided with some unusual shopping for exercise related to common dealer Andrew Kang’s crypto addresses.
Notably, on June 2, the Mechanism Capital co-founder deposited $1 million price of stablecoins into Arbitrum swimming pools and spent over 20% of it shopping for RDNT, the native token of decentralized finance lending platform Radiant Capital.
Later, Kang exchanged his newly purchased and present RDNT reserves for $867,000 price of ARB. Then, he deposited the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC), in response to information useful resource Lookonchain.
The platform noted:
“Looks like Andrew Kang is utilizing leverage to go lengthy $ARB on @RDNTCapital. Purchase $ARB → Deposit $ARB → Borrow $USDC → Purchase $ARB.”
Is the ARB rally sustainable?
Lookonchain revealed that an nameless whale deposited $1.5 million price of ARB to the OKX trade, simultaneous to Kang’s abovementioned transfers.
Whale”0xf59b” lastly waited for the rise of $ARB and deposited 1.2M $ARB ($1.5M) into #OKX half-hour in the past.
He withdrew 1.2M $ARB from #OKX on Could eighth, and the shopping for price could also be round $1.2.https://t.co/cJReZfg007 pic.twitter.com/jFwBRtPUpK
— Lookonchain (@lookonchain) June 2, 2023
Buyers deposit tokens to crypto exchanges usually for promoting. That raises ARB’s pullback prospects within the coming days if its demand drops. Curiously, the token’s technical setup on the each day chart suggests the identical.
Associated: Arbitrum-based Jimbos Protocol hacked, losing $7.5M in Ether
Notably, ARB has printed what seems to be a bear flag, confirmed by the price consolidating between two rising, parallel trendlines, after a powerful transfer downward. As a rule, a bear flag resolves after the price breaks beneath the decrease trendline and falls by as a lot because the earlier downtrend’s peak.
That places ARB on the street to $0.95 in June, down circa 20% from present price ranges.
Conversely, a decisive breakout above the flag’s higher trendline will doubtless invalidate the bearish outlook, setting the Arbitrum token on the course towards $1.35, a resistance degree from the March to Could 2023 session.
