- The network recorded the highest netflow among layer-one blockchains, outperforming peers like Solana and Sui Network.
- However, market sentiment remains bearish, with little indication of an imminent rally.
As a seasoned crypto investor with battle-hardened nerves and a portfolio that mirrors the rollercoaster ride of a Disney theme park, I find myself observing Arbitrum [ARB] with a mixture of intrigue and caution. While it’s undeniably impressive to see the network outperform Solana and Sui Network in terms of netflow, the stagnant price is concerning. It’s like watching a well-oiled machine that refuses to budge an inch, despite the gears spinning furiously underneath.
Following a 26.19% increase over the past week that pushed its price above $1, Arbitrum [ARB] saw a 0.50% decrease over the most recent 24-hour period. Remarkably, this downturn occurred even as there was bullish activity on the network itself.
According to AMBCrypto’s analysis, a decrease in investment from both common (retail) and large-scale (whale) investors seems to be a significant reason behind the current drop in the asset’s value.
Price remains stagnant as chain activity spikes
As a crypto investor, I’ve noticed an impressive surge in network flow on Arbitrum, home to the ARB token, over the past 24 hours, reaching approximately $16.6 million. This significant figure outperformed established layer-one blockchains like Solana and Sui Network, demonstrating Arbitrum’s growing strength within the crypto market.
Measuring the difference in the flow of assets entering and leaving a blockchain via Chain Netflow shows heightened activity when it’s positive. However, despite this rise, Arbitrum (ARB) hasn’t shown significant increase in its price yet.
Based on additional examination by AMBCrypto, a pessimistic outlook persists within the market, impeding ARB’s possible rebound.
Traders pull back as bears dominate the market
Over the last 24 hours, I’ve noticed a substantial decrease in active addresses within the crypto market, dropping from around 28,000 to roughly 14,950. This dramatic reduction represents more than half of the total from the previous day, suggesting that enthusiasm among fellow investors may be dwindling.
Over the course of a week, there’s been a modest uptick of about 0.54% for AA, hinting at a small revival in user interaction across a wider time period.
The decline in AA aligns with bearish activity confirmed by the Bull and Bear indicators from IntoTheBlock.
As an analyst, I’m monitoring a key metric that reveals the current sentiment in the market. At present, there are 139 bearish participants versus 130 bullish ones. This means that the number of bearish addresses outnumbers the bullish ones. Historically, when this happens, it tends to signal a potential decrease in the asset’s price.
Moreover, AMBCrypto noted that large-scale investors have been following a similar pattern, pulling back from the market. This adds to the idea that the market is experiencing a downturn.
Whales retreat as ARB faces further declines
Over the past day, there have been 401 significant ARB transactions recorded, amounting to a combined value of approximately 120.59 million ARB.
Read Arbitrum’s [ARB] Price Prediction 2024–2025
In general, when there’s little whale activity, it usually means they aren’t amassing assets, which is a significant stage that often leads to a rise in value.
With a decrease in retail involvement and less activity from ‘whales’, it seems likely that ARB could experience further drops in the market.
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2024-12-07 02:31