Arbitrum (ARB) is going through a rough patch as the ongoing bear market momentum and technical indicators and on-chain data point to a possible drop.
Currently trading at $0.72166, ARB is down 5.54% over the last 24 hours, reflecting the impact of increasing selling pressure.
“A move below a critical support level has raised concerns about the ARB’s recovery potential,” according to COINOTAG.
Arbitrum (ARB) is in the grip of an ongoing bear market with declining market confidence and low participation, increasing the likelihood of further declines.
ARB Drops Below Critical Support Level, Deepening Concerns
Arbitrum (ARB) recently fell below a critical support level, indicating increasing selling pressure and in line with the negative trend since November. This decline suggests that buyer interest has waned significantly, pushing ARB back toward support levels around $0.65. Investors are watching closely to see if prices stabilize going forward.
Technical Indicators: Bearish Trend Continues
Current technical indicators are negative for ARB in the short term. The Relative Strength Index (RSI) is approaching the oversold territory at 37.13, indicating increasing selling pressure. Furthermore, the intersection of the moving averages, the 9-day MA at $0.7682 and the 21-day MA at $0.8505, clearly indicates a bearish trend. This technical structure suggests that ARB’s downtrend may continue unless buying volume increases significantly.
Pessimistic Outlook for On-Chain Data
On-chain analytics data further reinforces ARB’s pessimistic outlook. Net Network Growth dropped by 0.98%, indicating that user adoption in the Arbitrum ecosystem is slowing. The “In the Money” ratio dropped by 0.22%, while concentration also dropped by 0.13%, indicating that investor participation is decreasing. Another important indicator is the 14.73% decrease in Large Transactions, indicating that institutional interest is decreasing. In addition, Price DAA Divergence is at 14.89%, indicating that the gap between user participation and price performance is widening. This data suggests that investors are losing confidence in ARB’s near-term potential.
Market Sentiment and Participation Decline
Current market sentiment reflects the overall challenges facing ARB. The 2.90% drop in open interest, currently at $163.69 million, reflects a decline in investor participation and reluctance to open new positions in ARB. A significant lack of buying interest could further pressure the cryptocurrency, leading to further declines; otherwise, these declines could continue unless there is a significant change in market sentiment.