- On April 23, the price of Arbitrum (ARB) fell by almost 3% on the daily chart, pushing its price to $0.1270 following the chaos in the DeFi sector due to the Kelp DAO hack.
- Earlier, the Arbitrum Security Council succeeded in freezing 30,766 Ethereum tokens linked to the hack.
- The price is hovering around the key level of $0.121, and if it falls below this level, it could trigger a new low.
On April 23, the price of Arbitrum (ARB) fell by about 3.26% in the last 24 hours, dropping its price from $0.1319 to $0.1270.
At the time of writing, ARB stock is trading at around $0.1269 with a market capitalization of around $766.76 million, according to CoinMarketCap price. The daily sales volume increased by 17.48%, around $112.82 million.
This decline in Arbitrum ARB-2.74% it shows that traders are paying more attention in the Layer 2 scaling sector. Despite this decline in the crypto market, the network is still seeing some positive activity.
KelpDAO Hack and Lazarus Group Attack Hit Arbitrum Hard
The main reason for the recent downfall is the shake-up of KelpDAO’s security after a mysterious cyber attack. This is the biggest gain for DeFi this year.
On April 21, criminals affiliated with the Lazarus Group managed to steal approximately $293 million. They did this by looking for a single weak point in the communication protocol. Arbitrum is working as a hub for liquid assets such as rsETH.
Because of this, the shock of the event caused a huge rush of money to be withdrawn from the Internet. More than $13 billion in Total Value Locked (TVL) was removed from the ecosystem within 48 hours. Users rushed to reduce their risk in case of any further damage.
To prevent this, the Arbitrum Security Council has taken immediate action and frozen 30,766 Ethereum tokens linked to the hack. However, once again, such incidents are eroding user confidence in DeFi and raising questions about the lack of security in established infrastructure. A similar drop was also seen in other cryptocurrencies such as SPIRIT.
Technical Levels Show Support at $0.121 and Resistance at $0.135
According to the price chart and technical analysis, Arbitrum is now testing the most important levels. These values are expected to decide the direction of the index in the coming month.
The price is currently hovering around a low of $0.121. This is the latest and most important line to support the stock. If the price fails to stay above this level, it may drop to $0.09. This rule is also confirmed by the lower Bollinger Bands.
On the other hand, Arbitrum may face strong resistance around $0.135. In the past, the cryptocurrency failed to break this level due to difficult trading conditions.
According to the TradingView price chart, the Relative Strength Index (RSI) is now around 56. This indicates that the cryptocurrency is currently neutral without entering the overbought and oversold area. It means that cryptocurrency currently has no sign of change in trend.
Although this drop creates pressure to sell on Arbitrum, there is another factor that can affect its price. On May 16, approximately 92.65 million ARB tokens will be issued. The value of these tokens is approximately $11 million. This can lead to a steep decline if demand does not increase by the same amount.
However, there is a strong establishment of organizations such as Robinhood decided to build a dedicated blockchain using Arbitrum’s technology for similar products. A symbol is one of the fastest growing sectors right now, which currently has $18.44 billion in market capitalization.
Also Read: Uniswap Price Drops 5% As It Is Dangerous To Break The $3.22 Support
