Arbitrum ARB Plummets 12.32% in a Month 99% Holders in Red

Arbitrum (ARB) has recently experienced a significant decline, with its price dropping by 12.32% over the past month. This downturn has left 99% of its holders at a loss, raising concerns about the potential for market recovery. The consistent downtrend has been evident over the last three months, with the price slipping from a peak of $0.80 to its current level of $0.38. The bearish patterns are visible on both daily and weekly trading charts, indicating a challenging market environment for ARB.

Investors are particularly concerned as the lack of profitability among ARB holders suggests that buyers have not reached favorable acquisition prices. The Metric of Value Relative to Market (MVRV) has shown severe levels of negativity, further indicating the distress among long-term holders. Long-term holders are facing an average loss of -30% over three months, compelling many to consider liquidating their assets to mitigate further losses. Historically, when less than 1% of holders enjoy profits, this has posed a buying opportunity for new entrants in the market, hinting at a potential bottom.

Despite recent attempts by buyers to reverse the trend, net flows suggest that buying activity has outpaced selling but not significantly enough to alter ARB’s price trajectory. Recent data indicates persistent negative flows, implying a cautious resurgence from market participants. The forthcoming days could be crucial as buyers return to the market in hopes of capitalizing on price declines. Long-term negative momentum may encourage speculative entry points for investors seeking undervalued assets, enhancing overall market activity.

Technical indicators point towards a potential continuance of bearish momentum in the short term. Observations indicate a bearish crossover across trading indicators, which historically forecasts continued declines in asset pricing. The price could face further downward pressure, potentially retracing to the key level of $0.35 if selling persists. However, if market trends evolve, a healthy recovery above the $0.44 mark could emerge if buyers respond favorably to dip-buying opportunities. Investors should remain vigilant and monitor ongoing market developments closely in these uncertain times.

In summary, Arbitrum (ARB) faces a challenging market environment, with 99% of its holders reporting losses amid continued bearish behavior. As the market navigates these turbulent waters, potential buying opportunities may arise for those observing long-term patterns. Staying informed