Today, the Arbitrum network is set to release 92.65 million ARB tokens, valued around $107 million. This release could cause concerns among investors, potentially leading to downward pressure on prices. Investors may aim to quickly profit from the situation, which could influence the market.

The event will occur today at 16:00 Turkey time, with the unlocked tokens distributed to the Arbitrum team, future team members, advisors, and investors. This release constitutes 3.49% of the network’s circulating supply. Previously, on March 16, a similar event released 1.11 billion ARB tokens, making up 41.89% of the circulating supply.

Prior to the unlocking event, the price of Arbitrum experienced a decline to $0.85 before attempting a recovery. However, the token faces resistance, and the recovery was short-lived. Investors may be exiting the market to avoid liquidity issues, posing further risks of decline.

If a sell-off occurs with the released tokens, the ARB price could potentially drop by 10%, testing support at the $1 level. Further decline could see the price reaching Saturday’s low of $0.8556, indicating a 25% drop from current levels. Conversely, increased buying pressure could drive the price upwards, surpassing the 200-day SMA to $1.45.

To invalidate the bearish trend, the price needs to break and close above $1.73. Breaking this level, along with the 50-day SMA at $1.71, could attract more buyers, pushing the ARB price above the projected target. Despite potential market fluctuations, maintaining the price above a certain support level could signal a reversal of the downtrend.

In conclusion, the unlocking of Arbitrum network’s tokens presents both opportunities and risks for investors. Monitoring developments closely and devising appropriate strategies to manage risks is crucial in navigating the market during such events.