Arbitrum (ARB) has been in a positive mood this trading week, advancing from a low of $0.74 to a high of $0.82.
The current Arbitrum (ARB) price stands at $0.80, but despite the current jump, bears still control the price movement. But where is the price of Arbitrum (ARB) going next, and what can we expect from the rest of September 2023?
Today, Crypto Lists will discuss Arbitrum (ARB) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Arbitrum provides faster speed at a significantly lower cost
- 2 Arbitrum whales sold a large number of ARB tokens recently
- 3 Technical analysis for Arbitrum (ARB)
- 4 Important support & resistance levels for Arbitrum (ARB)
- 5 What speaks for the rise in the Arbitrum (ARB) price
- 6 What indicates the downfall of Arbitrum (ARB)
- 7 What do analysts and experts say?
Arbitrum provides faster speed at a significantly lower cost
Arbitrum is an Ethereum layer-two (L2) scaling solution that provides faster speeds at a significantly lower cost, with the same level of security as Ethereum. Layer 2 solutions are designed to improve the efficiency of Ethereum by processing transactions and smart contracts off-chain or in a manner that reduces the burden on the Ethereum mainnet. While Ethereum manages a mere 14 transactions per second, Arbitrum races ahead at 40,000 transactions per second. Transactions cost several dollars to complete on Ethereum, while they cost about two cents on Arbitrum.
Arbitrum was developed by Offchain Labs, and it uses optimistic rollups to achieve its goal of improving speed, scalability, and cost-efficiency. It is also important to mention that Arbitrum derives its security from the Ethereum network, which provides consensus and finality for Arbitrum transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
Arbitrum supports unmodified EVM contracts, and it allows developers to deploy programs written in popular programming languages like Rust, C++, and more using Stylus, its upcoming EVM+ equivalence feature. Arbitrum’s native token is ARB, which allows ARB holders to vote on proposals that affect the features, protocol upgrades, and funds allocation. Developers can use ARB tokens to incentivize users to participate in specific activities, such as providing liquidity or using dApps built on Arbitrum.
Fundamentals of Arbitrum (ARB) are usually tied to the overall cryptocurrency market, which remains supported last twenty-four hours. One of the reasons that lifted investors’ optimism again is connected with the latest U.S. economic data that kept alive expectations that the Federal Reserve would certainly pause rate hikes at its meeting on September 20. Michael Green, chief strategist at Simplify Asset Management, Philadelphia, said:
A spate of economic data released this week showed energy prices, specifically gasoline, were largely responsible for a hotter-than-expected producer prices reading and a consensus-beating retail sales number. The Fed is probably done with raising rates and that’s removing concerns around equities.
Arbitrum whales sold a large number of ARB tokens recently
However, not long ago, Arbitrum (ARB) was trading above $1.30 ( July 2023), but since then, the price of ARB has been decreasing, and despite the current jump, the price of this cryptocurrency remains in a bear market. The Arbitrum token’s price tumbled to a new historical low of $0.74 on September 11, and one of the reasons behind ARB’s latest price downturn has been associated with the increased market activity of Arbitrum whales in the past few days.
According to information from crypto journalist Colin Wu, three whales recently transferred around 10 million ARB (worth about $8 million) to Binance. The first whale sold approximately 3.8 million ARB at $0.77 per token, while the second whale sold nearly 3.65 million ARB at $0.83 per token. Meanwhile, the third whale moved 2.8 million ARB for $0.79 per token. This seeming loss of interest from whales may have precipitated the downward pressure that pushed Arbitrum to a new all-time low.
Unfortunately, only several hours after three whales sold around 10 million ARB, blockchain analytics platform Lookonchain reported that another seven whales have sold 20.41 million ARB tokens (valued at about $16.05 million) with a total loss of $8.15 million. Another negative information for potential investors is the dwindling activity on the Arbitrum network. While the chain continues to hold its own as a prominent L2 network, it has been experiencing a steady decline in total value locked (TVL).
According to DefiLlama data, Arbitrum has a total value of $1.65 billion in assets locked on its network, reflecting a more than 35% decline in the past four months. This current figure also represents the network’s lowest TVL since March. The sustained decrease in total value locked suggests a loss of investor confidence, which could discourage participants from onboarding the network.
Arbitrum (ARB) is a highly risky investment, while the wider dynamics of the cryptocurrency market also play an important role in determining the price of ARB. Recession fears and monetary policy decisions from major central banks will continue to influence the cryptocurrency market in the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.
Technical analysis for Arbitrum (ARB)
Arbitrum (ARB) has weakened more than 40% since July 17, 2023, falling from $1.35 to a low of $0.74. Despite the current jump, bears continue to control the price movement, and in the weeks ahead, the price of ARB could be again under the selling pressure. On the chart below, I marked the trendline, and as long the price of Arbitrum (ARB) is below this trendline, we can’t talk about a trend reversal, and the price of ARB remains in the SELL-ZONE.
Important support & resistance levels for Arbitrum (ARB)
On this chart (the period from May 07, 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bears control the price movement of ARB for now, but if the price advances above $0.90, the next target could be resistance that stands at $1. The important support level is $0.70, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to the next support that stands at $0.60.
What speaks for the rise in the Arbitrum (ARB) price
The upside potential for ARB probably remains limited for the rest of September 2023; still, if the price advances above $0.90, the next target could be resistance at $1. Traders should also consider that the price of ARB is correlated with Bitcoin, and if the price of Bitcoin jumps again above $28000, we can see Arbitrum (ARB) at a higher price level than the current price.
What indicates the downfall of Arbitrum (ARB)
According to the latest data, Arbitrum whales have sold more than 30 million ARB between September 09 and September 11, which indicates that they are losing confidence in the underlying coin’s short-term price prospects. If the whales continue to reallocate funds to other investments, the price of ARB could take an even bigger hit in the upcoming weeks. The downfall of ARB can also be influenced by a wide range of other factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic trends. The last several weeks have been negative for ARB, and investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain.
What do analysts and experts say?
The cryptocurrency market is advancing this Wednesday; Bitcoin’s price hit levels above $26,600, which also positively influences Arbitrum (ARB). However, despite the current jump, bears still control the price movement of ARB, and many crypto analysts say that the fact that Arbitrum whales have sold more than 30 million ARB recently indicates that we could see new lows for ARB. Another negative information for potential investors is the dwindling activity on the Arbitrum network. While the chain continues to hold its own as a prominent L2 network, it has been experiencing a steady decline in total value locked (TVL). Arbitrum (ARB) is a highly risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors. It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in Arbitrum (ARB).
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.