Crypto markets are preparing to complete the second year of a challenging bear market. BTC still does not inspire hope. The negative trend of the king cryptocurrency and the decrease in buyers have also led to significant losses in altcoins. There are also altcoins that have been released to the market with unfortunate timing and have not been able to realize their potential.
Bear markets have been a period where Ethereum l2 scaling solutions issued tokens one by one. Tokens issued in an environment where risk appetite weakened did not perform as strongly as expected. However, historical data suggests that such beneficial and popular networks can perform impressively during a bull season for local cryptocurrencies.
Altcoins that have not yet experienced a bull season will experience parabolic rises in the bull season that will occur in 2024 or 2025 (maybe we will never see this?). It would not be surprising to see prices that have appreciated tens of times compared to their counterparts.
Arbitrum (ARB) is one of them and the most popular network among ETH L2 solutions. Recent data suggests that the network has been successful in attracting whale interest. So what is the impact on the price? First of all, the whale group of investors focuses on long-term goals. Moreover, it is a widely accepted view that they read the markets better than the rest of the investors. In addition, they must be swallowing the ready supply on exchanges, which also positively affects short-term performance.
The latest report shared by Lookonchain indicates an increase in whale accumulation. According to the report, a whale bought 1.19 million ARB worth over 1 million dollars from FalconX. Since September 13, the whale has accumulated 2.28 million ARB worth 1.93 million dollars from Binance through FalconX, with an average cost of 0.81 dollars.
Moreover, Santiment data suggests that not only these whales but also smaller investors are in an accumulation trend. So what are the current critical levels?
At the time of writing, the price is still around 0.81 dollars. Last week, the price plunged to the ATL level with extreme selling (excluding listing week) but managed to recover from 0.74 dollars. To limit the losses, the 0.81 dollar area needs to be maintained as support. In the event of a possible uptrend, there are 0.85 and 0.88 dollars followed by the 0.91 area.