Arbitrum price under pressure amid new ARB token unlock

Arbitrum’s price slipped on Thursday after the market reacted to the release of more $ARB tokens into circulating supply.

Arbitrum unlocks 92.65 million $ARB

The $ARB token reached highs of $0.99 as Bitcoin led the crypto market higher with its spike above $66k.

However, the altcoin traded lower after 1:00 pm UTC on the day following the token unlock that added 92.65 million $ARB to the market. The total value of the unlocked $ARB was $92.2 million.

This was a cliff unlock that saw 56.13 million $ARB, or 2.11 of circulating supply unlocked for the team and Arbitrum advisors. The other 36.52 was for investors and accounted for 1.38% of circulating supply.

According to data from TokenUnlocks, this latest $ARB release represents about 3.49% of circulating supply, and brings the total percentage of unlocked tokens to 29%.

Arbitrum has a total supply of 10 billion $ARB, with circulating supply currently at 2,653,939,384.

Per TokenUnlocks, the next $ARB to enter circulation will be on May 21, 2024.

Arbitrum price outlook

Arbitrum price rose to above $2.40 in January this year as cryptocurrencies began 2024 on a roll. The token’s value also surged to above $2.20 in March as BTC and ETH rallied, with news related to trading app Robinhood Crypto helping bulls.

However, $ARB has struggled with downward pressure in recent weeks and is currently down 14% in the past 30 days.

Downside pressure for $ARB has significantly come during the scheduled token unlocks, a scenario that has negative sentiment surrounding the popular project.

That outlook is what has seen $ARB fall below two key price levels in the past month.

In mid-April, the Arbitrum price fell below the horizontal line at $1.25. The zone served as a resistance area soon after, aiding bears’ push below the psychological $1.00.

$ARB has since tested $0.93 and could revisit one year lows of $0.75 if sellers take control. On the upside, a breakout above $1.00 could provide impetus for a potential recovery.

In the past 24 hours, $ARB/USD has retreated by 2%.

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