The number of ARB holders has increased significantly.
The short to medium term outlook remains bearish.
Arbitrum [ARB] has shown various attempts to recover from its sharp drop over the past 7 days, but its value has dropped by 16.58%. Although the coin is not alone, the drop shows that it is one of the worst performing coins in the top 50 by market cap.
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Despite the lackluster performance, the number of ARB holders has continued to surge since March 25. The growth has been exponential, helping the number of holders surpass 640,000.
Furthermore, considering that the impact of increased accumulation may not be immediate, the spikes in this metric most of the time suggest that the coin has great profit potential in the long run.
While ARB hype may have shrunk, its development activity has not. The metric measures developer input into network upgrades.
Despite being suppressed, the current value is still close to the peak seen in February 2023. Therefore, this shows that the Arbitrum developer community is committed to achieving the goals of the project. Therefore, if sustained, it could also be a bullish case.
However, all is not smooth sailing for ARB, according to the signs of weighted sentiment. The indicator is in its most negative state since the token was introduced to the market.
Since weighted sentiment takes into account social capacity perception, a decline implies that the fanfare surrounding ARB is about to die down. But if Arbitrum is to outperform in the long run, the metric’s condition may need to turn positive.
In terms of price action, ARB has failed to escape the red, falling 4% in the past 24 hours. According to the four-hour ARB/USD chart, the blue 20-day exponential moving average (EMA) is below the 50 EMA (yellow).
