- In the last 24 hours, ARB recorded the highest chain netflow among major blockchains.
- However, transaction sizes have declined, and overall market interest has dropped.
As a seasoned researcher with over a decade of experience in the crypto realm, I find myself intrigued by Arbitrum’s [ARB] recent performance. The network’s surge in liquidity, as indicated by the $15.78 million chain netflow, is indeed impressive and puts it ahead of Ethereum [ETH]. However, the reduced trading activity and declining interest among market participants leave me cautiously optimistic about ARB’s near-term outlook.
Following a 11.91% decrease in value the previous week, Arbitrum [ARB], at present, is still moving downwards. Although there was only a 1.10% fall on a daily basis, the persistent pressure on the price suggests that any significant increase might be limited.
According to AMBCrypto’s assessment, it seems that ARB might experience additional drops, even with its recent network advancements, due to investor skepticism and uncertainty among the market players.
Liquidity surge in ARB: A positive sign?
As a crypto investor, I’ve noticed a substantial surge in liquidity for Arbitrum (ARB) recently. In fact, chain netflow reached an impressive $15.78 million within the last 24 hours, as reported by Artemis.
This puts it ahead of Ethereum [ETH] and other major blockchains in terms of net asset movement.
The process known as chain netflow, which involves deducting outgoing transactions (outflows) from incoming ones (inflows), signifies the overall activity and well-being of a blockchain.
Lately, a significant increase in ARB’s network statistics indicates a substantial enhancement, potentially steering its pricing upward.
Yet, a decrease in trading transactions and minimal involvement from market players make it challenging to predict ARB’s short-term prospects with certainty.
Market activity declines for ARB
The market activity for ARB has noticeably decreased, as indicated by a substantial fall in the number of Active Addresses (AA).
Based on statistics from IntoTheBlock, there’s been a decrease of approximately 24.30% in the number of active cryptocurrency addresses over the last week, indicating a dwindling level of involvement from market players.
Furthermore, there’s been a significant decrease in the typical transaction amount. In fact, it went down from around $9,800 (its peak for the week) to $4,970 within just the past 24 hours.
Calculating this measure by splitting the overall transaction worth by the quantity of transactions suggests a decrease in network usage or activity.
The decline has also impacted the average holding period for ARB, which now stands at 5.4 months.
It implies that the majority of ARB token holders tend to be short-term traders who often swap their tokens, thereby decreasing the long-term interest in the asset.
Trades in a supply zone
On the daily chart, ARB has moved into an area where sellers have been active in the past, suggesting that the asset’s trend might be turning bearish. This region, known as a supply zone, typically experiences high levels of selling pressure, and it often leads to a decrease in the asset’s value.
Read Arbitrum’s [ARB] Price Prediction 2024–2025
At present, ARB appears to be in a period of supply, with predictions suggesting it could decrease even more, possibly reaching around $0.85. This level shows a congestion or cluster of liquidity on the chart.
To make the token change direction and jump upwards again, there should be a positive change in the overall market feelings about that particular asset.
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2024-12-15 12:07