Arbitrum (ARB) Price Decline

• ARB has declined by 38.9% over the past month.
• Arbitrum’s decline leaves 99% of holders at a loss, risking total crash.

Since hitting $0.956 a month ago, Arbitrum (ARB) has experienced sustained downward pressure. Over this period, the altcoin has reached a new all-time low of $0.37 recorded three days ago.

Since hitting this low, ARB has recorded a moderate recovery. As of this writing, Arbitrum was trading at $0.459, climbing by 6.38% on daily charts.

Prior to these gains, the altcoin had been on a decline, falling by 20.11% on weekly charts and 38.9% on monthly charts.

Arbitrum Holders in Profit Hit 0%

According to AMBCrypto’s analysis of IntoTheBlock, the recent price drop has left none of the ARB holders in profit. At press time, 0% of Arbitrum holders were in profit while 99% were at a loss.

Such a drop implies that holders have panic sold during price rebounds, fearing further losses. It risks a continued lack of confidence where all holders might decide to sell at a loss, causing the altcoin’s prices to crash.

An Inside Look at Arbitrum

With 0% of ARB holders in profit, the altcoin shows strong bearish sentiment, with sellers dominating the market causing downward momentum. This dominance was evident as Arbitrum’s CMF declined to -14 at press time, indicating that sellers are outweighing buyers.

Looking further, Arbitrum’s Sharpe ratio has declined to a negative zone, hitting -5.49, suggesting that the asset’s returns are lower than the risk-free rate. ARB holders are not compensated relative to the risk they are taking, making it less attractive to investors.

Additionally, Arbitrum whales have turned increasingly bearish, selling over 550.2k ARB tokens over the past day. High selling activity was seen across all market participants, with inflows into exchanges spiking.

What’s Next?

As Arbitrum drops to historical lows, leaving 0% of holders in profit, investor confidence is waning. This strong bearish sentiment could see ARB decline to $0.42. A breach below here could result in a new all-time low. Conversely, if buyers seize the opportunity to buy the dip, ARB could see a reversal and reclaim $0.50.