Why Arbitrum Price May Fall Again After Short-Lived Uptrend

Ethereum-based layer (L2) scaling solution, Arbitrum has been trading downward recently. Arbitrum price hovered at $0.6907 during the European trading hours, making a dip of 3%. Should bulls fail to overcome this selling pressure, the chances of ARB sliding will increase drastically.

According to CoinMarketCap data, its current market capitalization is about $2 million, ranking it 39th in market cap among cryptocurrencies. This comes amid significant trading activity, with a 23% increase in 24-hour trading volume, reaching approximately $190 million.

Arbitrum Price Bearish Market Looms

Over the past week, ARB has been trading in a range bound between $0.6825 and $0.733, showcasing a notable increase of 17% in its value. The cryptocurrency reached its all-time high of $2.40 six months ago but has since declined significantly, currently trading around  $0.69. 

Despite this decline, The recent performance indicates a positive trend, recovering from its all-time low of $0.5773, recorded just seven days ago.

Arbitrum Price chart

According to Coinglass, the market dynamics for Arbitrum price derivatives have noticeably shifted. The open interest for ARB derivatives has declined by 5.%, currently at $111million. This movement indicates a change in trader commitment to positions in ARB derivatives, possibly influenced by recent market conditions or shifts in investor sentiment. 

According to DeFiLlama, Arbitrum price currently has a Total Value Locked (TVL) of approximately $2.829 billion. Over the last 24 hours, the platform has seen about $9 million inflows. Additionally, Arbitrum’s treasury holds $44 million, and the platform has raised $123 million to date.

Will ARB Reach $1 Despite Recent Volatility?

Arbitrum price is currently seeing a significant decline in a bearish market environment. If this negative sentiment continues, Arbitrum’s value might stabilize at $0.68. Should market conditions degrade further, a drop to $0.67 could occur, reflecting a deeper bearish impact. An intensified downturn might push the price back down to $0.68.

Conversely, Arbitrum price could enter a bullish phase if investor confidence improves. A market reversal would likely push its value beyond the $0.70 resistance level. Continuing on this path, the cryptocurrency might approach $0.90. It could even reach as high as $1 in the foreseeable future.

Arbitrum Price chart: Source| TradingView

The 4-hour technical indicators for the Arbitrum show varied signals. The Relative Strength Index (RSI) is at 47, suggesting that the asset is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) exhibits a bullish signal with the MACD line (blue) crossing above the signal line (orange), reflecting a potential upward momentum in price.

The Awesome Oscillator (AO), currently at 0.0074, suggests mild bullish momentum as it transitions from red to green bars. This indicator is crucial for assessing the market’s driving force and possible trend reversals. The Average Directional Index (ADX) stands at 23, indicating weakening trend strength. 

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