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- 1 ARB price is standing at $1.0835, while witnessing a decrease of -0.43% so far today.
- 2 Arbitrum to distribute 3352 Ethereum worth over $6 million to its Decentralized Autonomous Organization(DAO).
- 3 Arbitrum price is trading below 20 and 50-day EMA on a daily basis.
ARB’s price ( Arbitrum price prediction) opened at $0.50 during its ICO and created a high at $1.60. The consolidation phase started for the price after hitting the high, ranging between $1.14 and $1.3970. ARB price did break out from the consolidation in the upward direction to form a high at $1.82 which the price did not sustain.
Price consolidated near the high and did a breakout to the downside shifting the trend from bullish to bearish. ARB price is moving downside with a zone-to-zone breakout. The breach of the $1.60 level caused the fall pushing the price down to the current level of $1.0835.
Will ARB Price Reach $1 level?
The previous candle has breached the support and the current candle is headed towards the bottom wick of the candle. The bottom wick resides at $1.050 and the break of which might push the price below $1.
Bulls need to defend the price from breaching the bottom wick to conclude this bearish momentum. Before shattering the recent support, the price did show signs of recovery rising near to $1.20 level but this turned out to be a pullback for the price to continue moving further. The correction has caused a loss of approximately 44% in the value of Arbitrum since April 19.
Reason For Arbitrum Price Drop
The airdrop in late April followed by whale sell action affected the price drastically giving rise to strong bearish momentum in the Arbitrum price prediction. The whales offloaded a massive 440 coins between May 5 and May 9. This move by whales gave rise to a downfall of approximately 25% in the span of 3 days.
Another reason for the drop was due to the decline in active users between May 1 and May 9. The active users declined by 42% coming down from 177,830 to 102,680 showing that the investors are losing interest in the Arbitrum.
Analysis Of ARB Price
RSI trades at 34.97 and soon might break below the 30 mark to enter the oversold zone. Chances of reversal inhabit at $1 as it can be considered as a strong psychological level for the price. Chaikin money flow score is -0.05 showing bearish sentiment in the market. ARB price has reached the lower band of Bollinger and might stay at this position if a break happens.
If bulls can break above the $1.20 level, there is a possibility that the move will discontinue the bearish trend and the price may rise to $1.30 resistance level. The longs/shorts ratio is 0.95 with 48.83% longs and 51.17% shorts indicating more investors are on the sell side.
Conclusion
Arbitrum price prediction, ARB price might fall below the $1 level if buyers do not jump into the market. The market structure and price action for Arbitrum are highly bearish and the price needs to break above the immediate resistance to gain bullish momentum
Technical Levels:
Major support: $1
Major resistance: $1.1740
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
