Arbitrum’s price rose by 9% to an intraday high of $1.25 on June 2, following the U.S. Senate’s decision to raise the debt limit. This increase in value surpassed the overall gains of the crypto market, which rose by 1.5% during the same period. The cryptocurrency’s outperformance occurred alongside unusual buying activity in Andrew Kang’s crypto addresses. On June 2, the Mechanism Capital co-founder deposited $1 million worth of stablecoins into Arbitrum pools, with over 20% of it used to buy RDNT, the native token of decentralized finance lending platform, Radiant Capital. Kang then exchanged his newly acquired and existing RDNT reserves for $867,000 worth of ARB before depositing the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC), according to data from Lookonchain.
Whale Deposits $1.5 Million Worth of ARB to OKX Exchange
Lookonchain also revealed that an anonymous whale deposited $1.5 million worth of ARB to the OKX exchange at the same time as Kang’s transfers. Typically, investors deposit tokens to crypto exchanges for selling, which raises ARB’s pullback possibilities in the coming days if its demand drops.
Technical Setup Indicates Bearish Outlook for ARB
The token’s technical setup on the daily chart suggests a bearish outlook. ARB has printed a bear flag, confirmed by the price consolidating between two rising, parallel trendlines after a strong downward move. A bear flag resolves after the price breaks below the lower trendline and falls by as much as the previous downtrend’s height. This puts ARB on the road to $0.95 in June, down by approximately 20% from current price levels. However, a decisive breakout above the flag’s upper trendline will likely invalidate the bearish outlook, setting the Arbitrum token on the course towards $1.35, a resistance level from the March to May 2023 session.
The price of Arbitrum increased after the U.S. Senate voted to raise the debt limit. Andrew Kang’s unusual buying activity in his crypto addresses, including depositing $1 million worth of stablecoins into Arbitrum pools and exchanging RDNT reserves for ARB, contributed to the cryptocurrency’s outperformance. However, a bearish outlook is predicted as ARB has printed a bear flag on the daily chart, indicating a possible fall to $0.95 in June. A decisive breakout above the flag’s upper trendline could invalidate the bearish outlook, with the potential to reach $1.35.