Arbitrum: Whales begin spending spree

• Several whales exchanged other assets for ARB as the price surged.
• Social volume fell, and bullish bias could wane if demand falls.

Over the last 24 hours, a notable trend emerged as Arbitrum [ARB] caught the attention of whales. This has caused a significant accumulation of the token, according to information from Lookonchain.

Realistic or not, here’s ARB’s market cap in ETH’s terms

Whales probably know a secret

According to the on-chain analyst, some whales exchanged other assets like Ethereum [ETH] for ARB. Besides that, two dormant whales, who have participated in no activity for a long time, also bought the token.

This surge in whale activity has piqued the interest of many investors and analysts. While participants could be monitoring the action, the impact on ARB already seemed to appear.

According to CoinMarketCap, the price of ARB increased by 5.26% in the last 24 hours. This suggests that the buying pressure has had a positive impact on the price action. 

Despite the hike, the weighted sentiment around ARB remained negative. At press time, Santiment showed that the metric was -0.356.

Typically, an increase in the weighted sentiment means that the broader commentary around the token was optimistic. However, ARB’s weighted sentiment means that a large percentage of the crypto community was not elated about the press time condition.

Source: Santiment

This, in turn, affected the social volume, as shown above. By definition, social volume refers to the number of search texts related to an asset via social media platforms. 

Therefore, the decrease implies that ARB was not part of the top asset being hyped by the retail part of the crypto market. 

ARB’s pump could slow down

Furthermore, the whale accumulation also triggered an increase in volume. And at press time, ARB’s volume was 441.28 million. 

The rise in volume shows that several ARB tokens have been involved in transactions lately. Also, this could have been instrumental in backing the price action. 

Source: Santiment

Meanwhile, the daily ARB/USD chart showed that the token’s momentum was bullish. This was because the Awesome Oscillator (AO) was positive. Usually, when this indicator is above the zero line, it means that the price is likely to continue upwards.

So, bearish forces were not currently driving the market. Regarding volatility, the Bollinger Bands (BB) showed that it was extreme. However, traders expecting a further increase beyond $1.19 might need to be cautious.

How much are 1,10,100 ARBs worth today?

This was because the ARB price had touched the upper band of the BB. When this happens, it means that the token is overbought. 

Source: TradingView

In conclusion, it is glaring that whales’ recent accumulation of ARB has had a positive effect on the token. However, there was no guarantee that the hike would continue based on the indicators and metrics evaluated.