Whales Are Quickly Attracting This Altcoin On Binance! What’s next?

Various whales have withdrawn 10 million altcoin ARB tokens from Binance in the past three days. However, the price is in an uptrend this time. Daily time frame readings are bullish. On the other hand, short-term ones are in the bearish direction. It also indicates that an initial pullback will occur before further upswing. Let’s look at the details.

Altcoin ARB move from whales

Arbitrum (ARB) price has increased significantly since the beginning of June. The price crossed a critical level three days ago. It was probably caused by a supply shortage caused by whales withdrawing ARB tokens. A whale pulled 2.34 million altcoin ARBs from Binance today. In the past three days, the five whales had pulled a total of 10.5 million ARBs. This may cause a supply shortage. It could also increase the altcoin ARB price.

However, it is worth noting that altcoin ARB has a circulating supply of 1.275 billion. The amount withdrawn therefore amounts to less than 1% of the circulating supply. Moreover, short-term timeframes present a mixed outlook. Accordingly, it casts doubt on the long-term uptrend.

Arbitrum price broke out of critical resistance

ARB price has fallen below a descending resistance line since it hit an all-time high of $1.82 on April 18. The decline resulted in a low of $0.90 on June 15. However, the price then jumped. On the other hand, it has increased since then. On June 21, the ARB emerged from the descending resistance line, showing that it had completed its correction. It also surpassed the $1.25 horizontal resistance area on July 15. However, the price has yet to initiate a significant upward move. On the contrary, it is hovering just above the $1.25 horizontal area.

However, the daily RSI supports the continued increase. When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and to decide whether to accumulate or sell an asset. If the RSI is above 50 and the trend is up, the bulls still have an advantage. However, if the value is below 50, the opposite is true. The indicator is above 50 and rising. Accordingly, both are signs of an uptrend.

Will Arbitrum Price Pull Back More?

The six-hour short-term technical analysis shows that ARB price has been trading inside an ascending parallel channel since June 15. Such channels often contain corrective structures. Since the channel is facing upwards, a final breakout from the channel is the most likely future price scenario. ARB price is currently located above the middle line (red circle) of the channel. If it breaks, the altcoin ARB will drop to the support line of the channel and possibly the $1.07 support area.

The latter will only be reached if the altcoin ARB leaves the channel. The six-hour RSI is supporting the decline. Although the indicator is still above 50, it is declining. It also created a bearish trend (green line). This is a type of bearish view where a momentum drop follows a price increase. When we look at Cryptokoin.com, it usually precedes the downward movements.

Despite this bearish ARB price prediction, a retracement of the middle line of the channel will invalidate the short-term bearish outlook. In this case, ARB price will rise to the resistance line of the channel at $1.50.