Arbitrum (ARB) token holders, who are using the promising layer 2 scaling solution, are experiencing mixed emotions following the distribution of rewards by the protocol. While some have expressed admiration for the efficiency and quickness of the platform, there have been concerns regarding the practical use of the token. As the ARB token witnessed a slight dip in the price chart, whales emerged to accumulate the token with the hope of selling it at a high level.
Arbitrum Whales Wake Up Amid Controversy
Arbitrum (ARB) is widely considered to be one of the most exceptional Layer 2 protocols built on the Ethereum network, with an impressive transaction throughput, as measured by Total Transactions Per Second (TPS). According to L2Beat data, Arbitrum One currently stands at the peak of the TPS ranking, sharing the top position with the primary Ethereum protocol.
Despite the initial challenges it faced during its launch in March, whales in the crypto industry continue to amass Arbitrum (ARB). According to the analytics platform Lookonchain, a large investor or institution acquired a significant amount of 11.7 million ARB, valued at $14.8 million, from Binance and Gate.io within the last 24 hours, as shared in a Twitter post this morning.
However, the current controversy regarding ARB airdrop has sparked bearish momentum in the token. Over the weekend, the announcement by the Arbitrum Foundation proposing to fund itself with 750 million ARB tokens, which amounts to almost $1 billion, sparked controversy within the ARB community. This was fueled by the revelation that the vote was merely a formality to ratify a decision that had already been made.
Will ARB Price Reach $1?
ARB price has displayed a massive drop in the last two days as it dropped from its high of $1.3. Moreover, the recent controversy may trigger a massive selloff by whales, slumping the token below the $1 level.
As of writing, the ARB token’s price trades at $1.24, with an uptrend of nearly 2.5% in the last 24 hours. ARB price took support near $1.15 and continued its surge above the 38.6% Fib level. However, after getting rejected near $1.3, the BoP indicator turned negative.
If ARB price continues its downward trajectory and drops below the EMA-20 trend line, it may accelerate for a sharp collapse following uncertainty among investors. A breakout below $1.1 will push the token near the critical support zone of $1.
However, on the bullish side, a surge above EMA-50 will pave a smooth road for the ARB token to the monthly resistance zone of $1.3-$1.4.
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