Arbitrum, a popular Ethereum Layer 2 token, is preparing for one of the biggest token unlocks of 2024. On March 16, the network will release 1.11 billion ARB tokens, which make up 76.62% of the circulating supply and are valued at $2.31 billion. This unlock will provide allocations to the team, advisors, and investors, who are likely to cash in on the early gains.
The price of Arbitrum has experienced volatility throughout 2024, trading in a range while the broader market rallied. However, with the upcoming unlock, ARB holders should expect even more volatility. The current price remains within the $1.7307 to $2.2017 range, as part of a horizontal consolidation in the market. This correction can potentially be seen as a buying opportunity, but caution is advised as more ARB tokens flood the market this week.
Following the unlock on March 16, additional unlocks will occur every 16th of the month for the next four years. This continuous unlocking of tokens could result in significant price action for the ARB token.
As of now, Arbitrum is trading at $2.0476, showing signs of a recovery rally. However, there is growing overhead pressure, with momentum dropping and the bears aligning in the ARB market. The price could potentially test the $1.7307 support level before making its next move upwards.
On the other hand, a resurgence by the bulls could push Arbitrum price above the $2.2017 resistance level and potentially reclaim the $2.4250 range high. This level was last seen on January 11, coinciding with the introduction of spot Bitcoin exchange-traded funds (ETFs) to the market.