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- 1 Arbitrum price currently trades at $0.8110 while witnessing a loss of 3.93% during the intraday trading session.
- 2 ARB price has slipped below 20, 50, 100, and 200-day exponential moving averages.
- 3 Arbitrum price has plunged more than 10% in the last two days.
Arbitrum (ARB) price has been in a strong downtrend, forming lower lows, since the formation of the annual high at the $1.82 level. The cryptocurrency price formed a support at $0.935 after falling below the major psychological level of $1. ARB commenced a bullish rally during mid-June in hopes of retesting the yearly high.
The bullish move was halted as soon as the price reached near the $1.31 level. The asset price faced strong rejection above $1.30 which induced bearish momentum in the price.
However, the reason behind the bullish rally was the release of news regarding BlackRock, an investment management firm, filing for Bitcoin Spot ETF.
On 31 August, the cryptocurrency price broke the recent support level of $0.935 and melted to form a support at $0.88. The price then retested the previous zone and shattered the $0.88 support level.
In the last two days, ARB price has plunged more than 10% and continues to melt. If the bearish momentum continues and bulls are not able to form a support at $0.80, the price might further meltdown toward the next support level of $0.75. On the other hand, if the ARB price can form a support at $0.80, the price might retest at $0.88.
Network Activity of Arbitrum
The daily active addresses of Arbitrum have dropped 10.8% to 119,886 in the past 30 days. The daily active addresses peaked on March 23, 2023, reaching to 611,610 since then there has been a notable drop.
The daily transaction has also dropped by 4% to 475,411. The daily transaction peaked on 23 March, reaching 2.77 Million.
The total value locked has also dropped 15.6% to $1,681 Million in the last 30 days. The market capitalization has declined 7.11% to $1,031,220,537 as of today. The 24-hour trading volume has increased by 105.12%.
Will ARB Price Melt to $0.75?
The cryptocurrency price has dropped below 20, 50, and 100-day exponential moving averages, indicating bearish momentum. Chaikin money flow score is below the 0 mark and currently trades at -0.14, suggesting weakness and capital outflow in the market.
The relative strength index has entered an oversold zone and has been hovering in it for the past two days, implying chances of short-term pullback. The long-short ratio of ARB is 0.8255 with 45.22% longs and 54.78% shorts suggesting a higher selling position in the last 24 hours.
Conclusion
The market structure and price action of Arbitrum is highly bearish. Technical parameters are favouring the selling side but traders should wait for the price to form support.
Technical Levels
Major support: $0.75 and $0.70
Major resistance: $0.9350 and $1.18
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.