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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