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Arbitrum (ARB) is currently trading at $0.72166, indicating a 5.54% decline over the past 24 hours. The cryptocurrency has breached a critical demand zone, which highlights increased selling pressure and growing uncertainty about its recovery potential.
The break below this key level suggests that the bearish momentum in ARB may persist unless market conditions improve rapidly. The next potential support level appears around $0.65, with the long-term resistance trendline remaining intact. This downward movement underscores the lack of significant buying activity, which could accelerate further declines.
As ARB’s technical indicators show no signs of improvement, traders are closely monitoring for any shifts in momentum that could stabilize the price at current levels. The Relative Strength Index (RSI) has fallen to 37.13, nearing oversold territory and indicating heightened selling pressure. Furthermore, the Moving Average (MA) cross highlights a bearish trend, with the 9-day MA at $0.7682 and the 21-day MA at $0.8505.
These technical signals confirm that ARB’s downward trajectory may persist unless there is an immediate surge in buying volume. Therefore, the near-term prospects for ARB look bleak.
ARB’s on-chain metrics also reinforce this bearish outlook, reflecting reduced activity and interest. Net Network Growth has fallen by 0.98%, indicating slower adoption within the ecosystem. The “In the Money” metric declined by 0.22%, while Concentration dropped by 0.13%. Moreover, Large Transactions saw a notable decline of 14.73%, further emphasizing lower institutional activity.
The “Price DAA Divergence” now stands at an alarming 14.89%, revealing a substantial gap between user engagement and price performance as per Santiment’s IntoTheBlock data.
This lack of interest in ARB, coupled with the absence of notable buying interest, leaves the cryptocurrency vulnerable to further declines unless sentiment improves drastically.
In conclusion, based on both technical and on-chain data, it is more likely that ARB will experience additional downside in the near term. Weak market sentiment, declining user engagement, and bearish technical signals make recovery unlikely without significant positive developments.
Source: ambcrypto.com
