The price of Arbitrum (ARB) is currently trading above the key resistance level of $1.17, but this breakout may not be sustained.
The most likely reason is the surge in profits, with potential gains now in the hands of ARB holders.
As increasingly bearish signals are being sent by ARB holders, the price of Arbitrum may experience a decline. Their sentiment indicates that potential selling is the result, and the Market Value to Realized Value (MVRV) ratio confirms this.
The MVRV ratio assesses investors' profits or losses. Arbitrum's 30-day MVRV is at 20%, indicating profits that may prompt selling. Historically, ARB corrections have occurred within the 7% to 24% MVRV range, which is marked as a danger zone.
The fact that investors are making profits further solidifies this outlook. With ARB rising by 20% in the past week, it also marks the first increase in nearly a month.
Realized losses have transformed into realized profits for the entire network and may continue to rise. This is only possible through selling, and ARB investors may choose to lock in profits before another downturn.
Arbitrum's price has broken through the one-month resistance level of $1.17, and the current turnover price of this altcoin is $1.18. However, despite this breakout, the cryptocurrency may face a decline due to the presence of strong bearish signals.
The Ichimoku Cloud is an indicator that suggests the market remains bearish. It is a comprehensive technical analysis indicator that provides insight into support, resistance, trend direction, and momentum.
As long as the cloud is red, it indicates that positive outcomes are unlikely, and this may also be the case for ARB.
Therefore, the price of Arbitrum may drop to $1.1 or lower, possibly even to $0.92.
However, a rebound from the $1.17 support level could trigger a recovery towards $1.30. If the uptrend can be sustained, this may also invalidate the bearish argument.
What's the next move? More strategies 🔍 Public Z number: Wai Bo Shan's Elephant
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
