Debuting on March 23, 2023, Arbitrum [ARB] entered the market at an initial valuation of approximately $0.50 across major trading platforms.
After a notable climb to its peak in early 2024, ARB has now slipped below its launch price, demonstrating a potential double bottom pattern on the daily chart.
The formation of this double bottom is yet to confirm a trend reversal due to ARB failing to surpass its recent high.
Despite this, various experts suggest that the cryptocurrency may have hit its lowest point, especially considering the historical pattern of a bullish fourth quarter in the crypto sphere.
Indicators such as the MACD signaling positivity further fuel the expectation of a price rebound.
Increasing Number of Active Addresses
Examining on-chain data reveals a rise in the count of addresses holding ARB, despite the coin’s price drop post-launch.
This uptick underscores the ongoing adoption of Arbitrum’s Layer 2 scaling solution, which operates on the Ethereum blockchain, aiming to enhance scalability and minimize transaction fees.
Noteworthy is the Arbitrum DAO, functioning as the network’s governing entity, representing a notable advancement as the first Ethereum Virtual Machine (EVM) rollup to achieve Stage 1 decentralization, further cementing the project’s credibility within the crypto domain.
Analysis of Arbitrum’s Liquidation Levels
Market dynamics for ARB have been significantly influenced by liquidation thresholds. Presently, there are 31 critical levels for long liquidations in comparison to 32 for short liquidations, indicating a sense of equilibrium in market sentiment.
This almost balanced distribution of long and short liquidations suggests a wavering outlook among traders regarding ARB’s future trajectory, albeit with a gradual incline toward optimism.
This neutral stance mirrors the overarching market climate where the majority of cryptocurrencies have been on a downward trend, prompting many investors to liquidate their holdings.
Anticipated ARB Token Unlock Scheduled for this Month
In five days, Arbitrum plans to release 2.65% of its current circulating token supply, amounting to roughly 92 million ARB tokens. These tokens are destined for team members, future collaborators, and investors.
Such events can potentially impact short-term price movements, necessitating a consideration of Arbitrum’s long-term fundamentals alongside market sentiment which will contribute significantly to pricing adjustments.
Source: Token Unlock
As of the latest update, ARB is priced at $0.51 with a market capitalization of $1.8 billion. This indicates potential for growth in case of a broader crypto market recovery.
Investors are keenly observing ARB’s technical and on-chain metrics. An upturn in market conditions could trigger a surge in the token’s value. A bullish crypto market in the upcoming months might propel ARB’s valuation considerably.