Summary
TLDR: The Arbitrum (ARB) price is facing challenges with indicators showing waning investor interest, such as a decline in the Relative Strength Index and daily active addresses. This could lead to a potential bear market, with the price predicted to fall to as low as $0.98 if critical support levels are breached. However, a shift in market sentiment could lead to a bullish reversal towards recovery targets of $1.75 or $1.80.
Key Points
1. The Arbitrum (ARB) price is facing challenges, with indicators suggesting waning investor interest. The Relative Strength Index (RSI) has dropped to its lowest level since November 2023, and daily active addresses on the network have also decreased significantly.
2. The decline in RSI from a high of 75 to 51 indicates a shift from strong buying pressure to a more neutral stance. This trend suggests a slowdown in market activity and potential challenges in price appreciation if interest continues to diminish.
3. A death cross occurrence in ARB’s Exponential Moving Averages (EMAs) in March signaled a potential bear market, leading to a sharp 44.62% correction in the price. If critical support levels at $1.22 and $1.03 are breached, ARB could potentially fall to as low as $0.98. Conversely, a shift in market sentiment could drive ARB towards recovery targets of $1.75 or $1.80.