ARB Fails Breakout Attempt, Drops 2.19% to $0.4557

Arbitrum's native token, ARB, experienced a failed breakout attempt on Friday, with the price dropping below $0.46 after briefly reaching near the $0.49 resistance level. The token's attempt to reclaim the $0.4722 resistance zone was rejected, leading to a decline that has now pushed the price back into consolidation. At the time of writing, ARB was trading at $0.4557, reflecting a 2.19% decline over the past 24 hours. Trading volume has dropped by 11.67% to $637.91 million, while market capitalization stands at $2.34 billion. A volume-to-market cap ratio of 27.26% suggests active trading, but the direction has favored sellers.

The fully diluted valuation of ARB is currently $4.55 billion. Additionally, the circulating supply stands at 5.15 billion tokens out of a total of 10 billion. With no fixed maximum supply, investor sentiment remains closely tied to token unlock schedules and broader Layer 2 market dynamics. Despite the pullback, technical indicators show a possible continuation of the previous upward trend. The Relative Strength Index (RSI) remains high at 72.09, above the moving average of 63.27. This shows ongoing buying pressure, although the overbought level signals caution. Moreover, the Moving Average Convergence Divergence (MACD) continues to show a positive trend. The MACD line is at 0.0313, above the signal line at 0.0218, with a green histogram strengthening bullish momentum. The indicator has held onto this pattern since early July, supporting the possibility of a renewed upward move if price stability returns.

Arbitrum is currently in a tug-of-war. The price action shows a clear rejection from resistance, but the underlying momentum indicators suggest the bulls haven’t given up. The next major move for ARB will likely be decided by whether this bullish momentum can translate into another, more successful attempt at breaking the $0.47 resistance. The Relative Strength Index (RSI) has shown signs of bullish divergence. This divergence occurs when the price of an asset makes a lower low, but the RSI makes a higher low, indicating that the selling momentum may be weakening. In this case, the RSI has formed a higher low while the price of ARB has made a lower low, suggesting that the downward trend may be losing steam. This bullish divergence, combined with the fact that ARB is still trading above its 50-day moving average, indicates that the rally may not be dead yet. However, it is important to note that technical indicators are not foolproof, and the price of ARB could still move lower in the short term. Investors should exercise caution and consider other factors, such as market sentiment and fundamental developments, before making any investment decisions.