Following a brief climb above $1, reinforced by a 26.19% weekly surge, the price of Arbitrum’s ARB token has slipped by 0.50% over the past 24 hours. This decrease persists despite positive activity on the network.
Analysis conducted by CryptoCrypto indicates that dwindling interest from both retail and whale investors plays a significant role in the recent downturn of the asset.
Stagnant Price Amid Heightened Chain Activity
Data from Artemis reveals that Arbitrum, the platform of the ARB token, experienced a notable surge in Chain Netflow in the last 24 hours, reaching $16.6 million. This figure surpassed major layer-one blockchains such as Solana and Sui Network.
Despite this increase in network activity, the price of ARB has not shown significant upward movement in response.
Additional analysis by CryptoCrypto suggests that pessimistic sentiment continues to dominate the market, hindering ARB’s potential recovery.
Traders Ease Off as Bears Take Control
The number of active addresses (AA) in the market has sharply declined over the last 24 hours, dropping from 28,000 to 14,950—just over half of the previous day’s total. This significant decrease points to waning interest among market participants.
On a weekly basis, however, there has been a slight uptick of 0.54% in AA, indicating a minor increase in engagement over a broader period.
The drop in AA aligns with bearish activity highlighted by the Bull and Bear indicators from IntoTheBlock.
These indicators track the dominant force in the market, with current data showing 139 bearish addresses against 130 bullish ones. A higher number of bears typically leads to a decline in the asset’s price.
Moreover, CryptoCrypto noted that whale activity reflects this trend, as larger investors are stepping back from the market, reinforcing the bearish sentiment.
Whales Withdraw as ARB Prepares for Further Decreases
Over the past 24 hours, the volume of large transactions involving ARB has decreased to 401, totaling 120.59 million ARB.
A lack of whale activity often indicates a lack of accumulation, a critical phase that typically precedes a price increase.
Coupled with reduced retail interest, the decreased involvement of whales suggests that ARB may encounter additional downward pressure in the market.