- The ARB crypto price has been facing selling pressure while the buyers are engaging from the $0.90 demand zone.
- Moving averages are showing a strong bearish signal at the current price level.
- The ARB/USDC and ARB/USDT cryptocurrency pairs are reflecting higher liquidity on popular exchanges.
Arbitrum (ARB) is a Layer-2 scaling solution on the Ethereum blockchain. The primary focus is to improve speed, scalability, and cost efficiency on Ethereum. The solution provides higher throughput and lower fees using optimistic rollups.
The ARB token price has been experiencing heavy profit bookings for the past two months. The cryptocurrency has recorded over 40% negative profitability during that time period. At present, the Arbitrum price is showing some signs of a potential recovery.
Arbitrum May 2024 Performance, Supply Changes, & Valuation
In terms of market cap, ARB crypto has placed itself amongst the top 40 most influential cryptocurrencies across the globe. Crypto has a current circulation of 2.65 billion ARB tokens, which holds a market cap of $2.65 Million, which means the exchange value of ARB is similar to US$.
The total diluted valuation of ARB tokens is estimated at around $10.00 Billion, with 10 billion tokens as the maximum supply. In the past few sessions, the crypto price has declined 0.70% due to the heavy profit booking that started in March 2024. It is underperforming in the global cryptocurrency market.
However, a positive rise in Arbitrum crypto can be expected because of the recent demand zone. The current crypto value is performing closer to the major demand zones. 24-hour trading volume has reached $271 Million, reflecting higher liquidity.
Price-to-Volume & Social Dominance Analysis
Since March 2024, the social sentiments in accordance with the ARB crypto have been slowly fading. The trading volume and price closely followed the sentiments, reflecting the user’s lack of interest.
However, a noticeable upsurge in social tweets has been observed after April 19, 2024, showing an increase in sentiments. This can also positively impact price growth. The social dominance of Arbitrum is at 0.45%.
Technical Analysis of the Arbitrum (ARB/USD) Crypto Price
The current ARB price has slipped below the key exponential moving averages, reflecting a bearish trend. The 50-day and 200-day EMAs had a death crossover at the $1.51 level, which is boosting the negative sentiments in the price.
ARB price has given a breakdown of the $1.19 support level. The price reflected an almost 24% fall on the $0.90 key demand zone. The price has successfully retested the breakdown level. It is showing signs of an opposing movement for further decline. The buyers need a strong bullish movement to counter the bearish might at the current phase.
The relative strength index (RSI) is showing a bullish momentum in the current trading phase. However, multiple crossovers between the RSI and signal lines reflect uncertainty in the momentum strength.
Summary
Since March 16, 2024, Arbitrum Crypto has been experiencing strong bearish pressure due to the breakdown of a major trendline, in other words, a head and shoulders pattern.
At the press time, the ARB price has successfully retested the $1.19 support level and is showing signs of a bearish movement. Additionally, the bullish trend can be expected above the $1.70 level.
Technical Levels
The immediate short-term support level for ARB at the time of writing was $0.90, while the $1.70 is the next resistance level. A drop below the aforementioned support level can lead to a price pullback to the lower support levels.
Or, if the ARB crypto price is able to make past the upper resistance level, a shift in a bullish trend can be expected.
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 any other advice. Investing in or trading crypto or stock comes with a risk of financial loss.