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Bitcoin price rose to $64,200 as US inflation data met expectations. However, it couldn’t stay above $64,000 and was at $63,760 at the time of writing. Will investors‘ risk appetite increase again? It’s hard to predict now; we need to see what happens until the daily close.
Arbitrum (ARB)
One of the largest crypto networks and the leader in terms of TVL. Arbitrum is well-positioned in terms of adoption, but its token price hasn’t met expectations. At the time of writing, ARB’s Market Value/Realized Value (MVRV) ratio is negative according to the 30-day and 365-day moving averages. The ratios are -3.51% and -31.72%, respectively, indicating something important.
If this ratio were positive instead of negative, we could say the current price is overvalued for the mentioned periods. However, the current negative output shows that the majority of investors are at a loss. In other words, a negative MVRV ratio reveals the attractiveness of the current price.
Historically, buying at a negative MVRV level has brought gains to investors, but crypto is always full of surprises. These gains might not occur or might come after a period too long for the investor to endure. Sentiment is also at -0.99, indicating it might be a good time to buy.
ARB Coin Price Prediction
Although the above two data points suggest it’s a good time to buy, there are also signs that we might see further declines. ARB‘s Relative Strength Index (RSI) is at 29.79, well below the neutral zone and even in the oversold area. Investors still prefer to sell rather than accumulate or hold their tokens. Lingering here could lead to deeper lows.
However, the RSI being in the oversold area is also a sign of a bottom in normal market conditions. Therefore, we should monitor a few more data points. Looking at capital flow might be sensible; for ARB, the Chaikin Money Flow (CMF) shows a value of -0.10. This means more capital is exiting the token than entering, and buyers prefer to stay on the sidelines according to this data.
On the price front, $0.92 is a key support level, and closures below it could lead to a drop to $0.84. In the opposite scenario, $1 and $1.2 could be targeted.
