ARB Token Drops 10% After Surge Amid Early Investor Sell-Off
Arbitrum's native token, ARB, surged by 17% on June 30 due to partnership speculation with Robinhood but has since retraced over 10%, currently trading around $0.32 and down nearly 5% in the past 30 days.
Robinhood Partnership Speculation
- Robinhood Crypto hinted at major crypto announcements during a fireside chat in Cannes featuring industry figures.
- Rumors emerged that Robinhood might integrate Arbitrum into its blockchain infrastructure for European stock trading.
- Former Ethereum developer Eric Connor suggested Robinhood selected Arbitrum, fueling hopes for a long-term partnership.
Investor Activity
- Within 12 hours after the price surge, early investors transferred approximately 16.75 million ARB tokens (valued at about $5.85 million) to exchanges like Binance and Coinbase.
- This selling activity contributed to the drop in ARB's price, reflecting a "buy the rumor, sell the news" pattern.
Technical Indicators
- The Balance of Power indicator is at -0.86, indicating strong seller control.
- The Relative Strength Index (RSI) is at 48.88, suggesting loss of momentum.
- Immediate support is at $0.2937; breaking this could lead to a test of the local bottom at $0.2526.
- Bulls face resistance at $0.38 and $0.4267; a break above $0.4267 may target $0.5343, $0.7085, and $0.99.
ARB Daily Chart with RSI and BoP | Source: TradingView