Arbitrum (ARB) price rebounded by 20% to $0.90 after hitting an all-time low of $0.75 on September 11. With the growing network activity, can ARB price surpass the crucial $1 resistance level in the upcoming weeks?
The popular altcoin started this month on a negative note as bears dragged the price down to an all-time low of $0.75 on September 11. However, interestingly, it was observed that a group of smart money whales somehow bought this dip. Whale investors holding between 10 to 100 million ARB tokens had 3.34 billion tokens in their wallets as of August 31. This figure shows how it increased to 3.48 billion by September 29. Additionally, it may indicate that whales took advantage of the low prices in September to accumulate 140 million tokens.
Currently valued at $0.90, the 140 million crypto sold recently by whales is worth approximately $126 million. The intense buying activity by whale investors can positively impact the ARB price due to various reasons.
Firstly, if market supply cannot keep up, a large influx of whale buying can create upward pressure on prices. Additionally, due to their financial power, whales may unintentionally influence other strategic individual investors to take bullish positions before October 2023. Chain analysis conducted on September 21 predicted that the recent launch of a new social finance platform called Post. Tech could positively impact the demand for the Arbitrum network.
Furthermore, Arbitrum network activity reached a new peak in the second half of 2023 this week. The graph shows how ARB network demand rapidly reached 11,810 active addresses on September 28. The daily active addresses metric tracks the user interaction rate in a blockchain network. It is obtained by adding the number of unique addresses that perform economic transactions daily. The date when Arbitrum daily active addresses last reached this level was three months ago, on June 29.
In summary, since individual network demand now aligns with the buying pressure from whales, Arbitrum seems poised for significant increases in October and beyond. From an on-chain perspective, Arbitrum is in a prime position to reclaim the $1.50 region in the coming weeks.
Global In/Out of Money (GIOM) data, which shows the distribution of buying prices among current Arbitrum holders, also confirms this bullish thesis. If Arbitrum scales its initial resistance to $1, this situation indicates that it could pull towards $1.50. Additionally, 56,110 addresses purchased 1.96 billion ARB tokens at a minimum price of $1.05. If they sell early, they can pose a significant hurdle for the bulls. However, if whales continue to accumulate their bags, the Arbitrum price surge can surpass $1.50 in the end.