On June 2, the value of Arbitrum jumped alongside the top-ranking cryptocurrencies after the USA Senate voted to lift the debt restrict.
Why is the ARB value up right now?
The worth of Arbitrum (ARB) rose 9% to an intraday excessive of $1.25, beating the crypto market’s complete total positive factors of 1.5% in the identical interval.
Arbitrum’s outperformance coincided with some unusual shopping for exercise related to in style dealer Andrew Kang’s crypto addresses.
Notably, on June 2, the Mechanism Capital co-founder deposited $1 million value 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 current RDNT reserves for $867,000 value of ARB. Then, he deposited the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC), in keeping with information useful resource Lookonchain.
The platform noted:
Is the ARB rally sustainable?
Lookonchain revealed that an nameless whale deposited $1.5 million value of ARB to the OKX alternate, simultaneous to Kang’s abovementioned transfers.
— Lookonchain (@lookonchain) June 2, 2023
Traders deposit tokens to crypto exchanges usually for promoting. That raises ARB’s pullback potentialities 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, dropping $7.5M in Ether
Notably, ARB has printed what seems to be a bear flag, confirmed by the value consolidating between two rising, parallel trendlines, after a powerful transfer downward. As a rule, a bear flag resolves after the value breaks beneath the decrease trendline and falls by as a lot because the earlier downtrend’s peak.
That places ARB on the highway to $0.95 in June, down circa 20% from present value ranges.
Conversely, a decisive breakout above the flag’s higher trendline will possible invalidate the bearish outlook, setting the Arbitrum token on the course towards $1.35, a resistance degree from the March to Might 2023 session.