While some altcoins are still unfamiliar with the bull season, these coins have the potential to provide substantial profits to investors based on past experiences. During the ongoing bear season, investors have witnessed the launch of tokens from many noteworthy projects. Like SOL Coin and others in 2021, some of these altcoins could experience significant rallies.
ARB Coin Price Prediction
Arbitrum (ARB) Coin is one such example and its potential is quite high. It is the most heavily utilized Ethereum scaling solution, so it is anticipated to reach its true ATH level in the next bull season. Its competitor, OP Token (with a market cap of $561 million), is currently being purchased at a price close to $2, while ARB Coin (with a market cap of $1.4 billion) is being bought at $1.16. We can explain this price difference by considering the maximum supply, which significantly influences the unit price.
Last week, the price of Arbitrum (ARB) made considerable gains as bulls attempted multiple times to reclaim the $1.20 area. However, things are not going as smoothly as expected. Particularly, on-chain data suggest that the price might experience a deeper dip soon. If ARB Coin manages to form a reasonable dip, it could quickly recover with the interest of long-term investors.
The current market value and Bitcoin’s outlook suggest that the current ARB Coin price might be expensive. Moreover, the largest whale cohort in the Arbitrum ecosystem has started taking a bearish position, which raises the expectation of a price decline.
Should I Buy ARB Coin?
The most influential Arbitrum whale cohort initiated another sell-off by holding a balance of 10 million to 100 million ARB tokens. After staying steady for two weeks, the chart below shows how they offloaded over 130 million ARB between May 17th and 22nd.
The recent $120 million airdrop largely went to institutional investors, most of whom are cashing out their earnings. The Market Value to Realized Value (MVRV) ratio, assessing the financial situation of current Arbitrum holders, suggests that the ARB Coin price could fall towards $1.
To invalidate the bearish outlook, the price would need to break the $1.2 resistance, disrupting the selling momentum. The next target would likely be the local peak at $1.3.
