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Arbitrum’s (ARB) ongoing bearish momentum indicates that it is facing a challenging period as technical indicators and metrics in the chain point to possible downsides.
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Currently trading at $0.72166, ARB is down 5.54% in the last 24 hours, reflecting increasing selling pressure.
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According to COINOTAG, “The decline below the critical demand zone has raised concerns about ARB’s recovery potential.”
Arbitrum (ARB) is facing an ongoing bearish move with declining market confidence and weak participation, suggesting further declines are likely.
ARB is falling below the critical demand zone, which is causing concern
Arbitrum (ARB) has recently broken below a vital demand zone. This coincides with a negative trend that has continued since November, increasing selling pressure. This decline reflects a significant decline in customer interest, leaving ARB at approx $0.65 It is pushing towards the support level. Traders are closely monitoring market signals that prices may show potential stability in the coming sessions.
Source: TradingView
Technical indicators reinforce bearish signals for ARB
Current technical indicators continue to support a bearish outlook for ARB in the near term. Relative Strength Index (RSI) 37.13 level, approaching the oversold zone, which indicates an increase in selling pressure. Furthermore, the moving average (MA) intersection reveals a clear bearish trend with the 9-day MA at $0.7682 and the 21-day MA at $0.8505. This technical structure suggests that ARB may continue to move lower if significant buying volume is not achieved.
Source: TradingView
On-chain metrics show a loss of confidence in ARB
The data from the on-chain analysis further emphasize the pessimistic outlook for ARB. Net network growth %0.98 experienced a rate cut; This indicates a slowdown in user adoption within the Arbitrum ecosystem. Situation “in the money”. %0.22 While the concentration decreases by %0.13 fell This reveals that investor participation has decreased. Especially large transactions %14.73 rate, which indicates a decrease in institutional interest. Also, DAA Price Divergence %14.89 on the level; This highlights the gap between user engagement and price performance. These developments show that investors are losing confidence in ARB’s short-term potential.
Source: IntoTheBlock
Market sentiment reflects hesitancy among ARB traders
Current market sentiment reflects the overall challenges facing ARB; in open positions %2.90 The rate cut is now down to $163.69 million. This decrease reflects a decrease in trader participation and a reluctance to open new ARB positions at this time. The lack of significant buying interest is contributing to ongoing pressures on the cryptocurrency, making it vulnerable to further declines; Otherwise, these declines may continue unless there is a significant change in market sentiment.
Source: Coinglass
Conclusion: Is further decline inevitable for ARB?
Based on current technical indicators and on-chain metrics, it appears that ARB will face further declines in the near future. Weak market sentiment, declining user engagement, and persistent bearish signals highlight that the cryptocurrency is in a tough spot. If there is no major positive development in the market, the bearish trend is expected to continue.
