Arkham’s ARKM token experienced a significant downturn of 20%, which raised concerns and sparked controversy within the cryptocurrency community. The controversy stemmed from the transfer of a large amount of ARKM tokens, totaling over 25.2 million tokens worth more than $56 million, to unidentified wallets and Binance. Competitor Nansen reported on these transactions, casting doubt on the transparency and intentions of Arkham.
In response to the community’s concerns, Arkham addressed the situation, stating that these transfers were in line with their tokenomics and involved unlocked tokens. Despite their clarification, the market reacted negatively, resulting in a substantial drop in the price of ARKM.
From a technical perspective, ARKM’s price had already been declining since its peak in March. Prior to the controversy, the token had tested a critical support trendline from late February. However, on April 3, it broke below this support level, accelerating the price decline. On April 8, it retested the trendline, which acted as a resistance. Currently, ARKM is testing a new support level around $1.93.
If Arkham is unable to maintain this support, technical analysis suggests a further potential decline of 26%, bringing the price down to $1.43. This demonstrates the precarious position of ARKM in the market and highlights the significant impact of market sentiment and transparency issues.
Arkham’s use of artificial intelligence has garnered attention, attracting investment from Binance Labs in November. The Arkham Intel Exchange, their platform for exchanging blockchain intelligence, allows users to monetize their insights through the “Intel-to-Earn” model, with ARKM transactions playing a central role in the ecosystem.
Despite the recent controversy and market skepticism, ARKM had previously experienced a spectacular uptrend, surging over 400% since August 2023.