ARB Price Plunge: New All-Time Low?
Arbitrum (ARB) has experienced a significant price drop, raising concerns about a potential lifetime low. Over the past month, ARB has declined by 31.67%, with a further 4.44% drop in the last 24 hours. This downturn warrants a closer look at the underlying market dynamics.
Increased Selling Pressure
Data reveals a surge in active addresses on Arbitrum since February 1st, rising from approximately 224,000 to 262,000. While increased activity can be bullish or bearish depending on context, other metrics paint a bearish picture. The Average Time Held (ATH) of ARB has plummeted by 79.96% in the past 30 days, indicating a lack of investor confidence and a preference for quick trades.
Over 12.41 million ARB has already been transacted, and this volume could increase as more holders decide to sell.
Whale Activity Exacerbates the Decline
Large investors, or whales, are significantly contributing to the selling pressure. A recent transaction volume of $15.2 million in ARB was dominated by large sellers. The Bull Bear Ratio confirms this, showing 150 large bears dominating the market over the past seven days.
Technically, ARB faces a critical juncture. Failure to reclaim support at $0.4685 could lead to a drop below $0.3453, establishing a new all-time low and representing a 26% decline. Conversely, reclaiming this support and building bullish momentum could propel ARB towards $0.67.
A Glimmer of Hope?
Despite the bearish trend, there's a potential positive development. The launch of USDT0, a new cross-chain stablecoin from Tether, on Arbitrum could increase adoption and usage, potentially benefiting ARB in the long run. Increased demand for stablecoins might translate into increased activity on the Arbitrum network.
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