Arbitrum’s token, ARB, has been caught in a downward spiral recently, raising concerns among investors. The last few days have witnessed a notable decrease in the value of ARB, accompanied by a significant shift in whale activity. In the last 30 hours alone, seven ARB whales have sold over 20 million tokens, resulting in losses exceeding $16 million.
Whale Exodus: A Major Sell-Off
As reported by Lookonchain on September 11, one particular whale with a large position in Aave decided to pull out their ARB tokens and transfer them to Binance. This whale withdrew 5 million ARB tokens (equivalent to about $3.85 million) within 5 hours, and then deposited nearly $3 million worth of ARB tokens into Binance. Despite this, the whale still holds around 8 million ARB tokens valued at over $6 million.
According to Lookonchain’s report, seven different whales have sold off ARB tokens, leading to significant losses. These whales unloaded a total of 20.41 million ARB tokens, valued at more than $16 million. This resulted in a collective loss of over $8 million, indicating a sharp decline of about 34%.
ARB in the Oversold Zone
The recent price trend for ARB has not been encouraging. Its daily chart shows a consistent decline over the past four days, with a significant drop on September 11. On that day, ARB’s value fell by 9.7% by the close of trading, marking the most significant drop in over two months.
As a consequence of this steep fall, the Relative Strength Index (RSI) line for ARB plunged into the oversold zone. Although ARB has experienced a minor 1% increase, trading at around $0.7, it has not managed to escape the oversold zone.
Surge in Long Position Liquidations
Data from Coinglass reveals that the recent price drop in Arbitrum has led to an increase in long position liquidations. On September 11, the volume of long liquidations reached its second-highest point in over three months, totaling $2.27 million. In comparison, short position liquidations were only around $98,000.
Interestingly, despite the frequent long liquidations in recent months, a positive funding rate has persisted. Arbitrum’s funding rate has remained positive despite its price decline, suggesting that traders believe ARB will eventually see a price increase in the long term.
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