Bitcoin price fluctuations, along with developments specific to altcoins, have increased volatility. ARB Coin is a prime example, with massive unlocking sales accelerating the decline. What are the current price predictions for Arbitrum (ARB)? What should investors expect in the coming days?
ARB Coin Price
ARB Coin was trading at $1.45 at the time of writing, and the price plummeted following the unlocking of 1.1 billion ARB in March. After reaching a peak about 20 days ago, the altcoin has experienced a drop of over 30%. For now, it has turned $1.4 into support, and bulls are trying to limit losses by holding above this region.
The RSI has retreated from 75 on March 13th to 51. This movement, in line with the massive unlock, confirms the expected downturn scenario and a decline in investor appetite due to the excessive new supply. We had shared warnings that significant losses could be experienced in the ARB Coin price during those days.
ARB Coin Price Prediction
Since March 29th, accelerated sales and the risk of investor demand falling below the neutral zone do not yet offer a clear outlook for a rebound. Moreover, the daily active addresses on the Arbitrum network have dropped to their lowest levels since January 2024. This decrease in activity is also likely to dampen optimism regarding price performance.
In altcoins, an increase in network activity usually coincides with a price rise. Although transaction fees on the network have been reduced with Dencun, this event has not been beneficial in the short term, even though it could positively affect the price in the long run. Another major signal related to potential losses came with the increase in volatility in March.
In March, ARB experienced a death cross in its Exponential Moving Averages (EMA). This formation is often seen when major declines begin and negatively impacts investor sentiment. Although not a leading signal, it has historically indicated deep corrections, reinforcing the loss of investor appetite (RSI dropping to 51).
As competition among Ethereum layer2 solutions intensifies, if ARB Coin continues its weak performance, the price could fall to critical supports at $1.22 and $1.03, potentially dropping to $0.98. However, a change in overall market sentiment or another surprising development that could increase ARB demand may lead to a recovery starting from the current price, targeting resistance between $1.78 and $1.8.
