Arbitrum (ARB) has recently been trading within an ascending triangle pattern and is currently facing strong resistance at $0.62. Although the pattern generally points to a bullish trend, the market's momentum is weak and if buyers fail to step in, ARB may appear
Currently, ARB's relative strength index (RSI) is 47, below the signal line, indicating that sellers are still in control. The Chaikin Money Flow (CMF) is also trending southward, showing that buying activity is not strong. If sellers continue to control, the price may fall to the support level of $0.48.
Also, the inactivity of whales and the reduction of centralized finance (DeFi) activities may also affect the price trend. The number of large transactions has dropped significantly, from 200 to less than 50 per week, and the transaction volume has also dropped from 342 million to 93 million. DeFi transaction volume has dropped from $813 million to $279 million, and the confidence of the primary market has been severed.
The liquidity heat map of Arbitrum shows bearish sentiment, with more short positions than longs. If the price increase leads to short positions being closed, it may bring buying pressure, but the overall bearish sentiment remains strong, absorbing buying activity. Currently, the proportion of losing wallets is as high as 91%, which may cause some investors to choose to close their positions to reduce losses.
