Six weeks after testnet launch, ARPA whale dumps 50m tokens, price falls 38%
ARPA, the native currency of ARPA Network, a blockchain agnostic offering decentralized computing services, is down 12% on the last trading day and fast reversing losses posted in the past few sessions, price action data on May 28 shows.
ARPA dumps 38%
The sharp retracement of ARPA prices in the last two days is linked to the action of a whale that has been rapidly dumping the token on Binance, the world’s largest cryptocurrency exchange. In crypto, a whale is an individual controlling a large sum of a given token or coin, in this case, ARPA.
Changing hands at $0.08040 when writing on May 28, ARPA is notably down 38% from May highs and under pressure, peeling back gains posted from early May. Specifically, price action data on the daily chart shows a wide-ranging, bearish engulfing bar on May 27, during which ARPA fell 34%.
The noticeable collapse coincided with the ARPA whale selling tokens in bulk at Binance.
According to an on-chain tracker, the whale, who before May 27, had been withdrawing ARPA from Binance in the past few weeks through multiple addresses, moved nearly 50 million ARPA to Binance before selling.
In response to this market action, ARPA prices crashed. On May 27 alone, prices tanked 34%, and the spillover is currently being felt in the market. ARPA is lower, and bears seem to be in control. However, based on recent price action, ARPA prices may recover.
To illustrate, ARPA remains bullish, reading from price action in the daily chart. The token is up 130% from April lows and remains in an uptrend despite the 38% crash in the last two days.
Testnet launch, plans for Rancast
Buyers extended gains following the release of the ARPA Network testnet in mid-April. With this testnet, developers can build prototype dapps on the platform while utilizing the ARPA-BLS Threshold Signature Schemes (BLS) network.
ARPA Network also remains one of the most active projects on Polygon by social activity.
Moreover, the computation platform plans to introduce the first random number generator (RNG) dapp called Rancast. According to the team, the tool “will be a decentralized, verifiable, multi-chain supported RNG that will demonstrate the ARPA network’s capacities and provide high-quality randomness.”