Arbitrum is currently seeing a decline in TVL and overall wages over the past few weeks. In the midst of this development, institutional investors are selling their tokens. The altcoin price, on the other hand, is responding with a decline. Analysts say the ARB is moving within a consolidated trend and could hit new highs in the future.
Institutional investors are coming out as the altcoin price drops!
cryptocoin.com As you follow, the crypto market closed last week with hard sales. Although the market started this week with a horizontal course, some cryptocurrencies cannot get rid of the sale. Ethereum Layer-2 project Arbitrum (ARB) remains under selling pressure. Analytics platform Spot-On-Chain announced that institutional investors are also exiting the altcoin project. In this context, Spot-On-Chain shared the following on account X:
The ARB price has dropped about 20% in the past month. That’s why institutional investors seem to be selling ARBs.
1. Mandala Capital has invested 3.6 million ARBs in OKX over the last 3 hours, at an average of $1,017 ($3.67 million).
2. CAP Finance sold 1 million ARBs 18 hours ago for 1.02 million USDC at an average of $1.02.
🚨 Institutions appear to be selling $ARB as $ARB price has been down by ~20% over the past month.
1. Mandala Capital deposited 3.6M $ARB to #OKX at $1.017 on avg ($3.67M) over the past 3 hrs.
2. CAP Finance sold 1M $ARB for 1.02M $USDC at $1.02 on avg 18 hrs ago.
Details 👇 pic.twitter.com/4Dtrd3s0g6
— Spot On Chain (@spotonchain) August 21, 2023
Arbitrum TVL dropped
Arbitrum is a layer-2 scaling solution that uses optimistic rollups to achieve its goals. The protocol takes advantage of Ethereum’s security and compatibility. Offchain Labs, a NewYork-based development company, developed the altcoin project. Arbitrum’s founders are Princeton University researchers ED and Steven.
Arbitrum has a total of 112,998 active wallets with very low transaction fees. ARB’s total TVL is $1.75 billion. However, its previous TVL was at $2.45 billion. With the waning interest, TVL has also been on the decline. Meanwhile, the fees for the protocol have not changed significantly over the past few months. Compared to the OP, ARB has seen an increase in the gases used by L2 smart contracts. Meanwhile, Arbitrum’s operations have not changed significantly in the last few months. The protocol also observed a strong increase in contracts deployed per week, according to Dune Analytics.
Arbitrum has a market capitalization of $1.2 billion. Altcoin ranks 37th in the crypto world. It has a total supply of 10,000,000,000 ARBs with a circulating supply of 1,275,000,000 ARBs. Meanwhile, the volume/market cap ratio of ARB price indicates a consolidated trend in price.
Will altcoin price see a breakout soon?
Arbitrum is currently observing a strong bearish trend on the daily chart. ARB is trading at $0.99, down 3.23% on a daily basis at press time. Meanwhile, ARB’s bullish trend is likely to see a pause near the $1.5 value. However, the bearish altcoin price is likely to see a reversal at $0.85.
ARB price is trading below the 50 and 100-Day Moving Averages. If the ARB price rises above the DMA, strong upside momentum is likely in the future. ARB’s RSI is close to 32, indicating it is in the oversold territory. The overall sentiment of the RSI is bearish.
