The price of Arbitrum’s governance token, ARB, saw a double-digit gain after a popular DeFi whale address resumed buying the token. The rally coincided with some unusual buying activity associated with popular trader Andrew Kang’s crypto addresses. However, the technical setup on the daily chart suggests a bearish outlook, with a potential pullback of 20% from current price levels.
– The price of ARB rose 9% to an intraday high of $1.25, beating the crypto market’s total overall gains of 1.5% in the same period.
– Popular trader Andrew Kang deposited $1 million worth of stablecoins into Arbitrum pools and spent over 20% of it buying RDNT, the native token of decentralized finance lending platform Radiant Capital.
– Kang exchanged his newly bought and existing RDNT reserves for $867,000 worth of ARB and deposited the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC).
– An anonymous whale deposited $1.5 million worth of ARB to the OKX exchange, simultaneous to Kang’s transfers.
– ARB has printed what appears to be a bear flag, confirmed by the price consolidating between two rising, parallel trendlines, after a strong move downward.
– A decisive breakout above the flag’s upper trendline will likely invalidate the bearish outlook, setting the Arbitrum token on the course toward $1.35, a resistance level from the March to May 2023 session.
