Arbitrum Price Rises After DeFi Whale Address Resumes ARB Accumulation

On June 2, Arbitrum’s price jumped along with the highest cryptocurrencies after the United States Senate voted to raise the debt limit.

Why has the ARB price increased today?

The price of Arbitrum (ARB) rose 9% to an intraday high of $1.25, surpassing the crypto market’s overall gain of 1.5% over the same period.

Arbitrum’s outperformance coincided with some strange buying activity associated with popular trader Andrew Kang’s crypto addresses.

Notably, on June 2, the Mechanism Capital co-founder deposited $1 million worth of stablecoins into Arbitrum pools and spent over 20% of it buying RDNT, the native token of decentralized finance lending platform Radiant Capital.

Kang later exchanged are newly purchased and existing RDNT reserves for $867,000 to ARB. He then deposited the proceeds into Radiant Capital to borrow Circle’s USD Coin (USDC), according to data source Lookonchain.

The platform noted:

It appears Andrew Kang is using leverage to go long $ARB on @RDNTCapital. To buy $ARB → Deposit $ARB → Borrow $USDC → Buy $ARB.”

Is the ARB rally sustainable?

Lookonchain revealed that an anonymous whale deposited $1.5 million worth of ARB on the OKX exchange, concurrently with Kang’s aforementioned transfers.

Whale”0xf59b” was finally waiting for the emergence of $ARB and 1.2 million deposited $ARB ($1.5 million). #OKX 30 minutes ago.

He withdrew 1.2 million $ARB by #OKX on May 8, and the purchase price could be around $1.2. pic.twitter.com/jFwBRtPUpK

— Lookonchain (@lookonchain) June 2, 2023

Investors deposit tokens on crypto exchanges, usually for sale. That increases ARB’s withdrawal options in the coming days if demand falls. Interestingly, the technical setup of the token on the daily chart suggests the same thing.

Related: Arbitrum-Based Jimbos Protocol Hacked, Losing $7.5 Million in Ether

Notably, ARB has printed what appears to be a bear flag, which is confirmed by price consolidation between two ascending, parallel trendlines, following a strong downward move. As a rule, a bear flag disappears after the price breaks below the lower trendline and drops by as much as the height of the previous downtrend.

That puts ARB on track for $0.95 in June, about 20% lower than the current price level.

Conversely, a decisive breakout above the flag’s upper trendline is likely to invalidate the bearish outlook, pushing the Arbitrum token on course to $1.35, a resistance level from the March to May 2023 session.