On Thursday, ARB coin is down 3.94% as the altcoin market experiences a correction. The pullback can be attributed to the Bitcoin’s plunge below $27,000. Despite a pause in rate hikes, the risk assets are not catching a bid. At press time, the native asset of Arbitrum Network was trading at $0.827 on exchanges.
The bearish sentiment in the markets shows that investors expect the interest rates to remain high for a long. These economic conditions may impact the price action of ARB token and other cryptocurrencies in the coming months.
We can clearly see a formation of the falling wedge on the daily chart of the ARB coin. The following chart also reveals the key levels of support and resistance. One of the most significant levels is the $0.916 level, which is acting as a huge resistance.
My Arbitrum price prediction is bearish as the coin has yet to show any strength. Only a clear breakout from the falling wedge pattern can change this outlook. In such cases, the price usually targets the top of the wedge, which lies above $1.80. However, such a move seems unlikely for now.
There has been a significant decrease in the total locked value on the Arbitrum Network. Since May 2023, the L2 blockchain has lost more than $800 million in TVL. While most of this TVL decrease is due to the slump in Arbitrum price, some of it is also due to the low on-chain activity.
Nevertheless, it remains one of the 4th largest blockchains in terms of the total locked value. Currently, there is $1.72 billion TVL on the network, which is spread across numerous dapps like GMX, Uniswap, Radiant, and AAVE.
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This post was last modified on Sep 21, 2023, 10:57 BST 10:57