$ARB The drop in the chart can be attributed to several potential factors related to both technical and market dynamics:

1. Technical Factors:

Rejection at Resistance: Arbitrum's price failed to break through the $0.94-$0.95 resistance level, leading to significant selling pressure and a pullback.

Support Test: The price has now returned to the $0.90 level, which might act as a temporary support. If this level holds, it could provide a base for recovery.

2. RSI and Overbought/Oversold Conditions:

RSI at 29: The Relative Strength Index (RSI) is in the oversold zone, indicating that the price is undergoing a short-term correction with increased selling pressure.

3. Volume and Momentum:

Declining Volume: Trading volume appears to have decreased, suggesting a lack of strong buying interest or profit-taking by investors.

MACD Turning Negative: The MACD indicator shows bearish momentum, reinforcing the current downward trend.

4. Broader Market Conditions:

Overall Crypto Market Impact: A decline in Bitcoin or Ethereum prices can often exert downward pressure on altcoins like Arbitrum.

Macroeconomic Factors: Negative global market sentiment or uncertainty may cause investors to shift towards safer assets, leading to a pullback in altcoins.

5. Potential News Impact:

Negative News or Uncertainty: Any negative developments regarding the Arbitrum ecosystem (e.g., regulatory concerns or protocol risks) could have shaken investor confidence.

Profit-Taking: Short-term traders likely booked profits as the price approached the $0.94 resistance zone, leading to a temporary sell-off.

Conclusion:

This drop seems to be largely driven by resistance rejection, low momentum, and market uncertainty. However, with the RSI in oversold territory, there is potential for a rebound. If the price holds above $0.88, a recovery and upward move toward $1 remain plausible.