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Arbitrum’s (ARB) price drop has led to ARB failing its investors by becoming the first major token during this season to chart an all-time low.
While meme coins and very small-cap tokens have witnessed ATLs before, Arbitrum’s market cap of $2.47 billion is rather surprising.
Arbitrum Investors Still Have Not Given Up
Arbitrum’s price may have formed an all-time low, but this has discouraged investors. Despite the price decline, participation on the network has been consistently high. As a result, the price DAA (Daily Active Addresses) divergence is currently flashing a buy signal.
This indicator suggests that there is minimal room left for further drawdown, making it an opportune moment for potential investors to consider entering the market. Plus, since the altcoin is at its all-time low, ARB has nowhere to go but up.
Secondly, the adoption rate of Arbitrum has remained impressively high, consistently exceeding 20%. This steadiness highlights the robust demand and growing interest in the Arbitrum network.
A strong adoption rate is crucial for any blockchain project’s long-term success and sustainability. Arbitrum’s performance in this regard is a positive sign for its future prospects despite the price witnessing declines.
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Moreover, the sustained high adoption rate indicates that Arbitrum has not lost traction in the market. Regardless of the fluctuations in the broader cryptocurrency landscape, Arbitrum has managed to maintain its appeal among users. This could help the price go back up.
ARB Price Prediction: Up, up, and Away
Arbitrum’s price has formed a new all-time low over the past 24 hours, trading at $0.72. The altcoin attempted this involuntary achievement twice in June, failing both times. This time, It was not so lucky.
However, since the altcoin has already likely hit bottom, there is no way to go but up. The altcoin supported by investor accumulation could be looking at reclaiming $1 as a support floor, which would warrant considerable support from either the market or the investors.
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If neither of the two appears, there is a good chance Arbitrum’s price could consolidate between $0.73 and $0.92. Since this happened back in October 2023, it could happen again and invalidate the bullish thesis.