Arbitrum [ARB] has begun allocating tokens to Decentralized Autonomous Organizations (DAOs) that have contributed to its network, according to Arbiscan. This token differentiation differs from the one provided to early adopters and participants during the testnet stage.
The Ethereum [ETH] scaling project had decided on 113 million ARB tokens out of a total of 10 billion for qualified participants prior to its formal token launch. Despite a disagreement with its community about the DAO allocation, the Arbitrum Foundation later agreed to the AIP 1.1 plan to proceed with the distribution.
At the time of publication, on-chain statistics indicated that 125 DAOs will receive the token in the first batch, with the remainder scheduled to be dispersed later. MakerDAO [MKR], Uniswap [UNI], and 1inch Network [1INCH] are among the winners.
The crypto community had high expectations for price performance prior to the formal coin launch. However, the debut was hit with sell-offs as ARB fell from $10 to just over $1.
Despite a few tries to recover from the drop, ARB’s price appears to have returned to its prior level. At the time of publication, the token has lost 25.17% of its value in the previous seven days.
According to the four-hour chart, the Awesome Oscillator (AO) indicated that the ARB had established a bearish twin peak. In this case, it may be understood that the buyers were not in control of the token’s movement. The AO was -0.0991 at the time of writing.
The green bars had begun to reflect, despite the fact that the indicator remained below the zero-histogram. This shows that some symptoms of resistance to the selling pressure were evident.
However, depending on the Directional Movement Index (DMI), this may also be tough for ARB. The +DMI (green) was 10.55 at the time of publication. The -DMI (red) on the other hand had a higher value of 27.38.
The Average Directional Index (ADX) was also 389.82. This indicator is used to determine an asset’s directional strength. When the ADX (yellow) falls below 25, it indicates that the strength underlying the price action was weak. When it is above the aforementioned number, it indicates that the price trend is well supported.
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