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Arbitrum struggles at $0.72: Will ARB rebound or drop further?
ARB’s bearish momentum persists, with technical and on-chain data indicating a challenging outlook ahead.
As of the writing of this article, Arbitrum (ARB) is trading at $0.72166, reflecting a 5.54% decline over the past 24 hours. The cryptocurrency’s breach below a key demand zone has amplified concerns about its potential recovery trajectory. In this article, we will analyze ARB’s current technical and on-chain situation to provide insight into what investors can expect moving forward.
ARB breaks below critical demand zone
The recent drop in value has led to the cryptocurrency breaking below a crucial demand zone. This significant event suggests that selling pressure is intensifying and may lead to further declines unless a change in momentum occurs quickly.
Furthermore, with ARB’s downward trajectory since November, this current bearish trend does not show signs of reversing without substantial positive developments. The cryptocurrency has breached a key support level, making recovery unlikely for the time being.
Technical indicators reinforce bearish outlook
A closer examination of technical metrics reveals that both the Relative Strength Index (RSI) and Moving Average (MA) cross are signaling a continuation of ARB’s downward trajectory. This is due to the RSI reading 37.13, nearing oversold territory, indicating an increased selling pressure.
Additionally, the MA cross highlights a bearish trend, with the 9-day MA at $0.7682 and the 21-day MA at $0.8505. These figures suggest that ARB’s downward path may persist unless there is a notable increase in buying volume.
On-chain metrics reflect reduced engagement
ARB’s on-chain data reveals a concerning drop in user interest and participation, as well as significant selling pressure. Key indicators such as open interest have declined by 2.90% to $163.69 million, demonstrating limited trader involvement at current levels. This lack of notable buying interest leaves ARB vulnerable to further declines.
In conclusion, based on the presented technical and on-chain data, it appears that a drop in value is more likely for ARB. Weak market sentiment, declining user engagement, and bearish technical signals all contribute to this negative outlook. For recovery, significant positive developments are needed to alter the current trend.
Source: ambcrypto.com
