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ARB Price Plunges: Is This a Bottom Signal?

ARB Price Plunges: Is This a Bottom Signal?

Cryptocurrency Market Analysis

The cryptocurrency market is showing signs of distress, particularly for Arbitrum (ARB), which has experienced a significant price drop. Over the past month, ARB declined by 19.42%, falling from a high of $0.95 to $0.63 at the time of writing. This follows a three-week downtrend.

Holder Profitability Hits Historic Low

Data from IntoTheBlock reveals a concerning trend: only 7% of ARB holders are currently in profit—an all-time low. A staggering 89% are operating at a loss, highlighting the widespread negative sentiment among investors. This situation is indicative of a market facing significant challenges.

ARB Holder Profitability Chart

Source: IntoTheBlock

Long-term holders are also exiting the market, with only 40% of ARB holders having held for over a year. This exodus of long-term investors adds to the bearish sentiment.

Two potential scenarios emerge: a final sell-off before a potential reversal or a bottom signal as weak hands exit the market.

What's Ahead for ARB?

Our analysis suggests strong downward pressure on ARB, with bears currently dominating the market. This is confirmed by the Advance Decline Ratio (ADR), which has fallen below 1.

ARB Advance Decline Ratio Chart

Source: TradingView

Further illustrating the bearish trend, Arbitrum's active users and adoption rate have plummeted. The Network Value to Transaction (NVT) Ratio has skyrocketed to 201 from 29.46, indicating a significant drop in transaction volume and active users relative to the market cap.

ARB Santiment Chart

Source: Santiment

The Market Value to Realized Value (MVRV) Ratio has also plummeted to -5.01, a clear indicator of capitulation with holders selling at a loss. This negative MVRV ratio suggests widespread fear and forced liquidations.

ARB Santiment Chart 2

Source: Santiment

Considering the current bearish sentiment, a drop to $0.56 is possible. However, the negative MVRV could signal a potential reversal, leading to a possible price recovery towards $0.74. Further analysis is required to determine the most likely scenario.

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Arbitrum [ARB] Price Prediction 2025–2026

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