Arbitrum: Is whale interest enough for price surge?

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Arbitrum: Is whale interest enough for price surge?
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Whales have shown renewed interest in ARB, accumulating $7.22 million worth of the token. This surge could contribute to increased liquidity and a potential market rebound for ARB.

This surge in whale interest coincides with a 12.18% price increase for ARB in recent days, bringing its trading price to $1.0053 at press time. However, the token faced resistance at the $1.0154 level, which must be surpassed in order for ARB to regain the previous levels of $1.153.At the time of writing, ARB’s indicators were favoring its upward momentum. The Relative Strength Index stood at 59.32, indicating that the buying pressure was still strong.

The growing CMF implied a rising trend of capital entering the market, further boosting the positive sentiment surrounding ARB.However, ARB experienced a decline in network growth, accompanied by a decrease in trading velocity. This meant reduced trading frequency and diminished interest from new addresses.

Additionally, trader sentiment leaned slightly bearish, with short positions accounting for 50.65% of all trades.While ARB showed signs of resilience, the Arbitrum protocol faced a challenging week. According to data from Token Terminal, overall activity on the protocol declined by 3.1%. Consequently, the fees generated by Arbitrum also plummeted by 56.1% over the last month. Addressing these challenges and revitalizing the protocol’s performance will be essential to support the long-term growth of ARB.

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