Arbitrum crypto’s tokenized stocks surge 476% – Can ARB end its 2-year slump?

Despite the momentum in tokenization, bearish sentiments did not lurk.

In addition to the daily token unlock of 479.06K ARB, a larger unlock is approaching. On the 16th of August, Abritrum will unlock 93.19 million ARB tokens worth $7.41 million. This adds selling pressure to the existing strong downtrend.

Such consistent selling pressure from token unlocks partially explains why ARB’s price is weak.

ARB’s market structure after a 2-year downtrend

The market structure has been bearish for the past two years, but things could be about to change. The 4-hour chart shows a structure that is in transition at around the $0.07 zone.

ARB’s price is making higher lows alongside the RSI Divergence which was at 50.99 as of writing, a typical institutional accumulation pattern. As big players build positions, the bigger crowd is fading.

This is evident as the Aggregate Crypto Open Interest dropped from $64.5 million to $46.63 million, indicating that the broader market was losing interest in the token.

Therefore, the price of Arbitrum remains in a downtrend due to the existing market structure and tokenomics.

But the growth in tokenization may help speed up the formation of a bottom between the $0.07 and $0.09 zones. However, if the slanting trendline breaks down, it could indicate the continuation of the downtrend.

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Final Summary

• The market cap of tokenized stocks on Arbitrum One has grown by 476%, but the token remains under intense selling pressure. 
• ARB price has been declining for the past two years but has hinted at bottoming at the $0.07 zone.