⚠️ Arbitrum (ARB) Price Breakout Above $1 May Not Last
Arbitrum (ARB) price is trading above key resistance at $1.17, but this breakout may not be sustained.
The most likely reason is that potential profits are in the hands of ARB holders due to the spike in profits.
🔸 Arbitrum's investors appear to want to sell
Arbitrum's price may be noted to be falling due to increasing bearish signals from ARB holders. Their sentiment suggests that a sale is possible, as evidenced by the Market Value to Realized Value (MVRV) ratio.
The MVRV ratio evaluates an investor's profit or loss. Arbitrum's 30-day MVRV is at 20%, signaling profits and likely spurring selling. Historically, ARB adjustments have occurred within the MVRV range of 7% to 24%, considered the danger zone.
Further strengthening this outlook is the fact that investors are reaping profits. As ARB rallied over the past week, rising 20%, it also delivered its first recorded price increase in nearly a month.
Realized losses are translated into realized profits across the network and will likely continue to grow. This is only possible through selling, and ARB investors can choose to secure their profits before another price drop occurs.
