Arbitrum (ARB) has surged to $0.95, marking a 25% gain in the past 10 days. According to on-chain analysis, what are the key indicators that could push the ARB price above $1 in the coming days?
Surge in Arbitrum
Popular altcoin Arbitrum has entered its second consecutive week of price gains as whale investors continue to exert buying pressure. Will they be able to sustain the profits and push the ARB price back to $1?
As the crypto market rally enters its second week, Arbitrum’s price has started to climb the top gainers list. According to recent on-chain analysis, the Ethereum Layer-2 scaling protocol has witnessed an unusually high demand from crypto whales.
Reports published by a data analytics firm indicate that millionaire crypto whales (wallets holding 1 million to 100 million ARB) have intensified their buying pressure in recent times. They have increased their cumulative holdings by 20 million ARB between October 23 and November 1.
The measurement of wallet balance by whales provides a real-time snapshot of the movement of tokens held by a group of large investors. The fact that whales continue to buy during a rally indicates their confidence in further price increases.
With a current valuation of $0.95, the 20 million ARB accumulated by whales last week is worth approximately $19 million. Considering the significant influence whales often have in a blockchain ecosystem, this accumulation wave could boost individual investors’ confidence.
Critical Data for ARB
Investors in the Arbitrum network seem to be holding onto their tokens for longer periods despite the ongoing rally, confirming an upward trend. Additionally, the average token age of ARB has been on the rise since it fell below $1 on August 23.
Since then, the average token age on the Arbitrum network has increased by 105%, reaching 354 on November 1. The average token age measurement tracks how long ARB tokens have remained inactive in their current wallets.
Therefore, the observed persistent increase in the average token age of ARB could be a classic indicator that a majority of long-term holders have yet to start moving their tokens. However, it remains unknown whether selling will begin once Arbitrum prices reach the $1 level.
