Investors
For those who hold $ARB, here is an important reminder!
Arbitrum (ARB) price may fall below $1, investors seek to exit
Despite the overall positive market trend, Arbitrum (ARB) price is at risk of correction, mainly due to its failure to successfully break through key resistance levels.
The chips in the hands of investors will determine whether the price can stop falling. However, they are likely to choose to take profits and exit, which is a fairly likely trend.
ARB investors may trigger a price drop
In the next few days, ARB holders may dominate its price direction. Judging from the market value to actual value (MVRV) ratio, now is a great time for investors to sell.
The MVRV ratio reflects the profit and loss of investors. Arbitrum's 30-day MVRV ratio is as high as 10%, which means that investors are generally profitable, which may trigger a sell-off. Historically, ARB price corrections usually occur when the MVRV ratio is in the range of 7% to 23%, which is considered a risk zone.
Another worrying factor is that 1.64 billion ARB are about to enter the profit range. According to the Global Fund Flow (GIOM) indicator, this part of ARB with a market value of more than $1.8 billion is about to bring benefits to investors.
The purchase price of this part of ARB is between 1.06 and 1.16, and the current price of $1.13 is close to the profit point. Therefore, ARB investors are likely to choose to sell before the price correction to lock in profits, which is bound to cause the price to fall.
ARB Price Prediction: May Fall to Previous Lows
Arbitrum's current price of 1.13 failed to break through the resistance level of 1.26, but rebounded from the support level of 1.10. If it can stay above 1.10, it will help the price to recover; if it falls below this support level, it may trigger a larger decline.
Given the above factors, we should not be surprised if the ARB price falls below the support level of 1.10. Further selling could push it down to 0.97, causing Arbitrum’s price to lose the key psychological support level of $1.
