Arbitrum (ARB) Price Nosedives to Record Low Amidst Massive Liquidations
#arbusdt
Arbitrum’s ARBUSD price has plummeted by over 30% in the past 24 hours, largely due to its positive correlation with leading assets like Bitcoin (BTCUSD) and Ethereum (ETHUSD), both of which have also dropped to multi-month lows. Currently trading at $0.44, ARBUSD is at its lowest price ever.
Despite the price drop, ARB's daily trading volume has surged by 151% to $589 million, indicating a bearish bias. This spike in volume amidst a price decline suggests heavy selling, possibly due to negative market sentiment or broader downturns. Substantial selling activity backs the downtrend, showing it’s not a mere anomaly.
The derivatives market for ARB has also been impacted, with a 200% increase in trading volume but a 30% drop in open interest, signaling many traders are exiting to avoid further losses. Futures open interest is at its lowest since October 2023, currently at $109 million. Long liquidations have surged, reaching $2.01 million, the highest since June 7. This indicates that traders who bet on price increases are being forced to sell at a loss as prices fall below their thresholds.
However, key momentum indicators like the Relative Strength Index (RSI) at 15.96 and the Money Flow Index (MFI) at 3.53 suggest ARB is oversold and may soon see a rebound. Despite this potential for a positive correction, the bearish sentiment remains strong, as indicated by a negative Chaikin Money Flow (CMF) of -0.20, signaling high capital exit and possibly further price declines. If a rebound occurs, ARB's price might reach $0.99.
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