Arbitrum’s (ARB) price fell below $2 following a massive unlock in recent months and continues to decline. Whether the ARB price will drop further from its current levels or experience a recovery remains a topic of interest.
Will Arbitrum Price Drop?
Optimism among ARB investors appears to be decreasing day by day. It is being discussed that Arbitrum’s price might have reached its all-time lows since its inception.
Investors who have been buying ARB since early April are generally continuing to experience losses. The existing downtrend in the market is also reflected in the metrics showing ARB’s Profit/Loss.
Losses on the ARB side continue to affect investor sentiment, contributing to their cautious behavior. In the past, many ARB investors bought with long-term profit goals and held onto their investments (HODL).
However, it seems that Arbitrum investors are increasingly moving away from this approach. The existing downtrend in the market has also influenced the actions of this group.
All these factors are reflected in the average coin age indicator, which shows that investors holding ARB for long-term goals are increasingly selling. The average coin age indicator reveals when transactions occurred on all coins in a network and indicates how long they remained passive.
What Will ARB Price Be?
Looking at Arbitrum’s price, a head and shoulders pattern is forming on the charts. This head and shoulders pattern indicates a trend reversal and is generally considered a bearish indicator. This pattern has three points: two lower peaks (shoulders) and a higher middle peak (head).
ARB’s technical indicators are noteworthy because the target neckline is 0.92 dollars, which is 100% below the current level. A potential decline could pull the altcoin down to 0 dollars. However, considering that even FTX’s native token FTT did not drop to 0 dollars during the FTX collapse, this may not be very likely.
Still, given the situation, it is possible for Arbitrum to reach its historical low levels. The current low level for ARB is 0.73 dollars, and a move below this level may not be surprising.
Conversely, if the 0.92 dollar level is surpassed, the price could potentially move back above 1 dollar.
