Arbitrum Price: Why is ARB Price Falling?

Technology

10,000 New Users Join Ethereum Layer-2 Arbitrum, ARB Price Eyes $2 – Crypto News

Published

1 year ago

May 27, 2024

Dripp

As the world’s second-largest cryptocurrency Ethereum (ETH) sparks a rally to $4,000, its Layer-2 platforms have also been showing similar momentum recently. Along with Ethereum, Layer-2 platform Arbitrum is also showing a 5% move on the upside moving all the way past $1.25. Moreover, the daily trading volumes have also surged by 113% all the way to $840 million.

10,000 New Users Join Arbitrum Over the Last Week

Based on the data showcased in the chart above, there were 1.5 million individual wallets holding ARB tokens as of the beginning of the week starting on May 20. As of the latest update on May 25, this number has climbed to 1.51 million ARB wallets.

This suggests that approximately 10,000 new users have joined the Arbitrum network within the span of this week. As these fresh participants engage in transactions, the increasing demand for ARB tokens may catalyze further price fluctuations.

Courtesy: Santiment

Moreover, with the anticipation of Ethereum ETF inflows on the horizon, a significant portion of the 1.51 million ARB investors are likely to retain their assets, expecting favorable outcomes from the influx of funds into the Ethereum L2 ecosystem.

The resultant reduction in sell-pressure coupled with the rising demand from new adopters could propel Arbitrum’s price to advance towards the next significant milestone at $1.50.

ARB Price Action

Arbitrum (ARB) has been striving to surpass the overhead resistance of $1.27 in recent days, but the bears have managed to maintain their position.

A minor positive for the bulls is that they have successfully prevented the price from falling below the 20-day EMA ($1.11). This increases the likelihood of a breakthrough above the resistance. Should this occur, the ARB/USDT pair is expected to gain momentum, potentially rising to $1.60 and eventually reaching $1.75.

However, this optimistic outlook will be invalidated in the near term if the price declines sharply and falls below $1.10, which could drag the price down to the strong support around $0.90.

The Arbitrum price has been moving in tandem with Ethereu, Similar to ETH, ARB has also clocked 28% over the past week. Earlier this year in January 2024, the ARB price touched an all-time high of $2.4.