- Arbitrum Foundation launched token allocation for capable DAOs.
- Considering ARB’s price during the token launch, DAO distribution might need investor caution
- ARB has been recording selling pressure, similar to the token launch phase.
According to Arbiscan data, Arbitrum (ARB) has begun distributing tokens to DAOs (Decentralized Autonomous Organizations) that were involved on its platform. However, this distribution is different from the tokens that were given to the project’s early supporters and adopters during the testnet phase.
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Participating DAOs Receive Their Share
Prior to its official launch, the ETH scaling project set aside 113M ARB coins (out of 10B total tokens) for eligible contributors. Despite tension between the Arbitrum Foundation and the project’s community, the community authorized the AIP 1.1 proposal for the allocation.
On-chain data at the time of writing indicated that 125 Decentralized Autonomous Organizations would receive the coins in the initial batch, while others would get them later. Top beneficiaries include 1inch Network, Uniswap, and MakerDAO. However, despite anticipation for impressive price action, ARB experienced a significant drop from $10 to around $1, and at the time of publishing this news, it had a seven-day loss of 25.17%, despite attempts to recover.
Issuance Preferring Red Bars?
The 4-hour chart of the token displays the AO (Awesome Oscillator), which indicates that ARB formed a somewhat bearish twin peak. This suggests that buyers did not control the asset’s momentum, leading to the possibility of a downward trend. During this publication, the AO read -0.0991 and remained below the zero histograms, but emerging green bars confirmed signals to counter ARB’s selling momentum.
Despite this, it may still be challenging for the altcoin given readings from the DMI (Directional Movement Index). At the time of publishing, the positive DMI stood at 10.55, while the negative one stood at 27.38. The ADX (Average Directional Index), which measures the asset’s directional impetus, was at 389.82. When the indicator falls below 25, it indicates weak strength, whereas values beyond this mark mean a strong momentum backing the token’s price movements.
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