Arbitrum (ARB) is facing a critical juncture as its price drops to $0.72166, reflecting a sharp 5.54% loss over the past 24 hours. The decline below a crucial support zone has triggered alarm bells among investors, raising questions about ARB’s potential for recovery. As the token struggles to regain momentum, many are wondering: will ARB find a floor and bounce back, or will the downward trend continue?
$ARB (Daily) $ARB broke the strong ❎ demand zone & currently a Bearish 📉 Trade is in play.
— The Crypto Titan's (@cryptotitans11) December 31, 2024
Anticipating a kind of more Dump in $ARB by seeing the present market conditions❗️#arb #arbitrum #ARBUSDT #btc #bitcoin #Crypto #cryptocurrency #thecryptotitans pic.twitter.com/JDju7qlyXv
Key Support Zones in Focus
ARB’s recent decline beneath vital support levels has intensified concerns. This drop is in line with a broader bearish trend that began in November, putting the token under considerable pressure. The next key support level to watch is $0.65, a potential floor for ARB if the selling momentum persists. The lack of buying activity only adds to the vulnerability, leaving ARB susceptible to further losses. Additionally, the resistance trendline remains intact, making any potential recovery a formidable challenge.
Technical indicators paint a similarly bleak picture. The Relative Strength Index (RSI) stands at 37.13, approaching oversold territory, while moving averages suggest a significant disconnect. The 9-day average is at $0.7682, trailing behind the 21-day average of $0.8505. Unless there is a sharp uptick in buying interest, ARB’s price may continue to slide.
Data Indicates Erosion of Confidence
On-chain data reveals signs of waning confidence in Arbitrum. Network growth has slowed by 0.98%, indicating reduced adoption. Additionally, the decline in both investor concentration and the “In the Money” metric reflects less interest from larger players. Large transactions have dropped by 14.73%, further illustrating institutional players’ reduced activity in the market.
The Price DAA Divergence stands at 14.89%, showing a widening gap between user engagement and price. Open interest has decreased by 2.90%, signaling fewer traders entering the market. These trends suggest that bearish momentum is likely to continue unless a major shift occurs.
Also Read: Arbitrum (ARB) Hits $5B TVL, Is a Bullish Breakout Towards $2.2 Imminent?
Looking Ahead
ARB’s recovery hinges on stronger buying activity and improved market sentiment. Without significant changes, the token could face continued pressure in the near term. For now, Arbitrum remains at a critical crossroads, with uncertainty hanging over its future price direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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