Arbitrum (ARB) hits all-time low
The price of Arbitrum (ARB) fell more than 28% in the last 24 hours and reached a new low. Meanwhile, crypto market leaders bitcoin (BTC) and Ethereum (ETH) also sagged to local lows due to today's cryptocurrency market events
At the time of writing, the altcoin is trading at $0.44. This is the all-time low in the value of Arbitrum (ARB).
Arbitrum is falling and traders are selling out
Arbitrum (ARB) has an interesting dynamic: the token is falling in price, but the daily trading volume has increased sharply. In this case, it most likely indicates that many investors are selling the asset due to negative news or a general decline in the market.
The opposite movements of ARB's price and its trading volume create a negative divergence, indicating a significant bearish bias towards the second-tier token.
ARB's significant drop of nearly 28% over the past 24 hours has also affected activity in the derivatives market. Trading volume soared more than 200% during the period under review.
At that, the open interest (OI) decreased by 30%. Thus, the OI on ARB futures at the time of writing is $109 mln. The indicator is at its lowest level since October 2023.
This suggests that many market participants are leaving the ARB futures and options market to avoid further losses.
In addition, the price drop has caused a surge in liquidations of long positions. According to Coinglass, forced ARB longs liquidations reached $2.01 million at the time of writing. The last time such a high level of daily forced liquidations was seen on June 7.
