In my last ARB analysis I talked about the falling wedge and the break out that I anticipated from said pattern. Both targets were hit with ease, congratulations if you took the trade.
For now, I think the bull trend will continue. With BTC edging up and higher time-frames not even being overboughton ARB, there's a very decent probability that we're going to move towards the current all-time highs on the chart. However, on lower timeframes the ARB chart is overbought, so we might see a minor pull-back towards the yellow support area.
Targets in blue.
If BTC can confidently break above $30,000 we might see some huge buying power going to alts, which could even bring ARB to >$2, but that's for a later analysis.
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Bouncing from yellow area as we speak
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ARB is dumping because the team is apparently the team is selling off coins. Google around you will find some articles explaining what's going on.
I think we should see how the daily candle closes today and then place orders to gain a position. What a great idea!
halfeld_dutra
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Mate..they are not selling..they already explained that it was a loan: twitter.com/arbitrum/status/1642567580748595202?s=20 The "sophisticated actor in the financial markets space" is the market maker Wintermute: mobile.twitter.com/wintermute_t/status/1642572067752013826 Market Makers place limit-bids / sells on both sides of the orderbook to earn the spread. Usually they only have $. Therefore, to "make a market“, they need the coin for placing bids (and giving the liquidity to a market). Obviously MM don’t want to buy, therefore they loan. Then you ask: "Why do they need to hire the services of a market market in the first place? The DAO could operate 100% fine without wintermute. The only reason to hire a market maker is to make a market - but ARB is freely traded on loads of DEXes. Seems like obvious self-dealing." The answers are (1) Some CEX require you have a MM to get you listed. (2) To prevent big swings it’s in all market participants interest there are MM. (3) And maybe they did not "hire“: They gave a loan and probably earn some interest on it.