HomeNewsArbitrum Token Unlock: Key Details and Potential ARB Market Effects

Arbitrum Token Unlock: Key Details and Potential ARB Market Effects

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  • Arbitrum set to unlock $2.32 billion worth of ARB tokens, impacting 76% of circulating supply.
  • Crypto community anticipates significant volatility, with potential for both bearish and bullish market movements.

Arbitrum, a notable Layer-2 blockchain network, is poised to unlock a staggering $2.32 billion worth of vested Arbitrum (ARB) tokens on March 16. This event marks a significant milestone not just for Arbitrum but for the broader crypto ecosystem, given the sheer volume of tokens set to be released.

ARB Token Unlock: A Significant Release and Community Response

On-chain data provider Lookonchain reveals that approximately 1.1 billion ARB tokens, currently under lock, will be made accessible. This figure represents an overwhelming 76% of the token’s circulating supply, highlighting the magnitude of the unlock.

Specifically, 673.5 million tokens, valued at around $1.41 billion, will be allocated to the team and advisers, while investors are set to receive 438.25 million tokens, worth approximately $915 million.

This unlocking process, termed as a “Cliff Unlock,” implies that the entire batch of tokens will be released simultaneously on the specified date, deviating from the conventional gradual release mechanisms often observed in the industry.

The impending token release has stirred a mix of anticipation and apprehension among the crypto community, with many bracing for potential shifts in the ARB token’s price dynamics.

Discussions within the community reveal a split, with some members contemplating short positions against the token in light of the unlock, while others have preemptively liquidated their holdings, aiming to sidestep any adverse market movements.

This climate of uncertainty is further compounded by Arbitrum’s announcement, indicating that this unlock event is slated to be one of the most substantial in 2024, potentially ushering in a new era of volatility for ARB holders and the market at large, s previously reported by ETHNews.

Market Trends and Price Analysis

In the lead-up to this pivotal event, Arbitrum’s price has exhibited signs of horizontal consolidation, oscillating between $1.7307 and $2.2017. This pattern of movement is indicative of the market’s cautious stance, particularly in the wake of significant sell-offs by large-scale holders (whales) in anticipation of the Dencun Hard Fork.

Source: TradingView

At present, Arbitrum is trading at $2.0476, manifesting a tentative recovery rally amidst growing selling pressures. Market analysts have noted a discernible downtrend, underscored by a declining Relative Strength Index (RSI) and bearish signals from the Awesome Oscillator (AO) histogram bars.

Future Prospects and Strategic Positions

Looking forward, the ARB market could potentially test the lower boundary of its current trading range at $1.7307. A breach below this level may exacerbate losses, signaling a bearish trend.

Conversely, a bullish resurgence could propel the Arbitrum price beyond the $2.2017 resistance, potentially retesting the $2.4250 highs observed in early January.

At the time of writing, the price of ARB has risen 11.56% in the last 24 hours, reaching a price of $2.22. This represents an increase of 5.53% over the past 7 days.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628