Arbitrum Rally Fooled the Market: The Real Trend Might Shock You
The higher timeframes showed a downward trend for Arbitrum (ARB). In November and December 2024, the rest of the cryptocurrency market saw a rally, but ARB saw a 140% increase in just one month. However, the coin did not enter a bullish trend as a result of this. AMBCrypto discovered that the market structure of Arbitrum has been negative since March 2024, after looking at the weekly chart of ARB.
ARB Hits New Lows Despite Token Unlock
On June 16, about $27.6 million of the 92.63 million monthly ARB unlock, which is a component of the 3-year linear unlock, was unlocked. The negative pressure was unabated by these routine unlocks, which represented 0.93% of the maximum supply.
A new low was recorded in April, while the lower high of $1.19 from May was not broken in November. As it has been for a year, this indicates that ARB’s market structure was bearish on the one-week chart. The OBV hit a new low compared to April, indicating strong selling pressure, while the RSI indicated bearish momentum was widespread.
Bloodbath for ARB: Bearish Structure Signals Deeper Collapse Ahead
In addition to the weekly chart’s massively negative image, the 1-day chart also showed a bearish structure that had been active for the previous month. A line of red candles appeared during the past week. While Bitcoin continued to trade beyond the critical $100k barrier, Arbitrum has lost 28% in just eight days.
The enormous selling volume in the last few days was highlighted by the OBV, which pushed it to a new low. It is probable that the price will next drop into the $0.18 level if it breaks below the 78.6% Fibonacci retracement line at $0.499.
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