Arbitrum (ARB) price is at risk of falling due to its failure to break a critical resistance level. Whether the price drops further depends on whether investors decide to sell for profit or hold onto their investments.
Arbitrum (ARB) price is currently vulnerable to a correction despite overall positive market signals. This vulnerability stems from ARB’s inability to surpass a crucial resistance level. The extent of any potential decline largely depends on whether investors choose to take profits. If investors refrain from selling off their holdings, it could prevent further price drops for ARB.
ARB Investors Positioned to Influence Price Amid Favorable Selling Conditions
Arbitrum (ARB) faces potential price fluctuations driven by investor actions in the near future. The Market Value to Realized Value (MVRV) ratio, currently at 10% over 30 days, indicates profitable conditions that may prompt selling activities. Historically, ARB corrections typically occur when the MVRV ranges between 7% and 23%, marking this range as a critical zone for potential market shifts.
Arbitrum GIOM. Source: IntoTheBlock
Moreover, the Global In/Out of the Money (GIOM) indicator suggests that 1.64 billion ARB tokens, valued at over $1.8 billion, are approaching profitability. Purchased within the $1.06 to $1.16 range, ARB’s current price of $1.13 is nearing the threshold where these holdings will yield profits.
Given these factors, ARB investors are likely to capitalize on their gains by selling, potentially triggering a price dip in the process.
Arbitrum (ARB) Faces Critical Support and Resistance Levels
Arbitrum (ARB) is currently trading at $1.13, encountering resistance at $1.26 after failing to surpass this level. The altcoin has found support at $1.10, a level that has proven resilient in previous tests. Maintaining above $1.10 could signal potential for recovery, while a drop below it could indicate bearish sentiment ahead.
Considering the current market dynamics, there is a possibility of ARB declining below the $1.10 support level. Further selling pressure may push it down to $0.97, potentially jeopardizing ARB’s position above $1.00.
Arbitrum Price Analysis. Source: TradingView
However, a scenario of minimal selling and a bullish bounce-off at $1.10 could facilitate a recovery for ARB. In such a case, ARB might aim to reclaim $1.26, and a breakthrough above this resistance could negate the bearish outlook, pushing ARB’s price towards $1.30.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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