Arbitrum (ARB) Price Poised to Chart a New All-Time Low

4 months ago 3

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Arbitrum’s (ARB) price is in for a major drawdown looking at not just the chart pattern but also the investors’ behavior.

Whether ARB ends up dropping to $0 or save skin before then is something to look out for.

Arbitrum Investors Prepared for Losses

Arbitrum’s price could be looking at a new all-time low as the optimism among ARB holders has completely vanished. Arbitrum investors have been experiencing consistent losses on their transactions since mid-April. This ongoing trend is clearly highlighted by the Realized Profit/Loss metric, which underscores the financial challenges faced by the investors.

The persistent losses have significantly impacted investor sentiment, leading to a noticeable shift in behavior. Previously, many investors adopted a HODLing strategy, holding onto their assets in anticipation of long-term gains.

However, the sentiment of HODLing among Arbitrum investors has completely disappeared. The prolonged period of losses has eroded their confidence in this approach.

As a result, investors are now focusing on distribution strategies, as indicated by the mean coin age metric. Mean coin age measures the average age of all coins in a network, reflecting how long they’ve been held without being moved.

An increasing mean coin age suggests accumulation and holding, while a decreasing age indicates higher trading activity. This shift suggests a preference for liquidating assets rather than holding onto them, reflecting a more cautious and reactive investment approach.

ARB Price Prediction: Forming New Lows

Arbitrum’s price is observing the formation of a head and shoulders pattern. The head and shoulders pattern is a bearish chart formation indicating a potential trend reversal. It consists of three peaks: a higher middle peak (head) between two lower peaks (shoulders).

Based on the technical pattern, the potential drawdown could send the altcoin down to $0 as the target is 100% below the neckline at $0.92. However, this is impossible since even during the FTX collapse, its native token, FTT, did not slip to $0.

Thus, the more practical outcome is Arbitrum’s price hitting a new all-time low. The current ATL lies at $0.73 and marking a lower low below this would not be surprising.

But if by the mercy of ARB holders, the altcoin manages to bounce back Arbitrum’s price could bounce back. Potentially breaching the neckline at $0.92 will enable recovery and reclaiming $1.0 will invalidate the bearish thesis.

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