Key Takeaways:
- Arbitrum airdropped tokens worth $118 million to different DAOs
- ARB price held support near $1.3.
NEW DELHI (CoinChapter.com) — Ethereum Layer-2 scaling solution Arbitrum announced an airdrop on April 25 for 131 DAO addresses.
When Arbitrum first announced its airdrop schedule, the team stated it had set aside 1.13%, or 113 million ARB tokens, of the initial token allocation for DAOs building apps on the Arbitrum ecosystem. In addition, the Ethereum scaling solution required eligible DAOs to share their wallet addresses on Twitter.
Arbitrum initially made test transactions before sending the ARB tokens to the chosen DAOs.
Of the 131 organizations, Treasure, an NFT ecosystem, and GMX, a DEX, received the most ARB tokens (8 million ARB each).
Decentralized options exchange Dopex received the third-highest share of the airdrop.
Also Read: Cardano Price Technicals Suggest ADA Needs To Clear $0.42 For Hopes of Fresh Rally
On-chain analyst Lookonchain noted that Trident, an Arbitrum-based video game, sold 131,345 ARB tokens for $172,000. The DAO had received a total of 257,540 ARB tokens. DAOs are usually long-term holders since selling often involves a long voting process.
ARB Price Rallies Despite Airdrop
Often, airdrops drop a token’s price as recipients start selling to book profits and increase the token’s circulating supply. However, ARB prices rallied 10.5% on April 26 to form a daily high near $1.5. Later during the day, bears moved in and pared some of the token’s gains.
Also Read: The Bombings in Belgorod Amid Raging Russia-Ukraine War
Despite the token’s recent downtrend, ARB price remains 188.64% above its original launch price.
The trend is better visible in the four-hour (4H) chart. Bears aggressively defended the resistance near $1.5, forcing the ARB bulls to retreat. ARB price would need to break and consolidate above the $1.5 resistance for the uptrend to continue.
Flipping the immediate resistance level could help the Arbitrum token price target the resistance near $1.59 before downside corrections pare gains.
On the other hand, if the selling pressure increases, ARB price might drop to its 50-4H EMA (purple wave) and 100-4H EMA (blue wave) support confluence near $1.42. Breaching below the confluence support might see the Arbitrum token fall to test support near $1.36 before recovering.
The relative strength index for ARB remained neutral, clocking at 61.21 on the 4H chart.
