• Tue. Apr 23rd, 2024

Arbitrum Holders Behaviour Slows Price Recovery, May Decline By 18%

Maria Bartiromo

ByMaria Bartiromo

Aug 16, 2023

Arbitron (ARB), a once important participant in the cryptocurrency market, has recently seen its price trajectory hampered by distrust among its owners, preventing it from making up a lost position. Analysis of the coin’s past price movement shows that early in August, when Arbitrum’s value was trading at $1.14, it fell below the critical 50-day Exponential Moving Average (EMA) line, raising questions about its near-term prospects.

The Total Value Locked (TVL) in the Decentralized Finance (DeFi) ecosystem, an important gauge of the network’s health, has experienced a depressing decline of over 6% over the past two weeks, bringing its total to $2.38 billion. Investor’s concerns have grown due to the decline in the coin’s TVL, potentially indicating a loss of faith in Arbitrum’s growth abilities.

In another analysis of the FXStreet platform, as interpreted by Aaryamann Shrivastava, the coin may face an imminent collapse. Shrivastava explained that it might continue to slide down to the lows like it has done in June at $0.94, or an 18% decline from its current position until it completely collapses.

The situation was worsened by the Relative Strength Index (RSI), which was below the neutral 50.0 level. The current situation suggests that a price rally in the future is becoming less likely. Also, data released by FXStreet shows that Arbitrum’s reputation has declined by approximately 13% in terms of total TVL over the last 30 days.

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Arbitrum  Recovery Eminent, Trader’s Emotions Linked To Price Downward Trend

Analysts believe that the likelihood of a more significant price decrease looms if the current adverse emotions intensify further. More price predictions have it that Arbitrum’s price would decline, eventually challenging its $1.08 and $1.06 support levels – representing critical psychological thresholds, which could either operate as a point of recovery or, if crossed, contribute to a longer-lasting downward trend.

It was also gathered that Arbitrum, on June 28, recorded 4,663 new transactions, which were traced to new addresses. But it’dit’d witnessed a 35% drop in transactions, dropping to 3,530 by the end of June 28. A report from Chibi Finance linked Arbitrum’s bad trading outing to past scam activity in 2023. A survey by the FXStreet says that most traders and investors are yet to come to terms with the fact that such an incident took place.

The current Arbitrum’s neutral arrangement is attributed to Coinbase’s USDC stablecoin launch on June 27 on the Arbitrum platform. This new development is also expected to increase transactions and liquidity in the Arbitrum Ecosystem.

This event is also believed to have the power to push the coin to a bullish position again and divert investors away from the so-called Chibi scam. As of the time of writing, there are conflicting indicators on the Arbitrum trading chart; the coin has been tagged a “no trade area” by industry experts, pending when the price will recover.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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