The Arbitrum (ARB) price is navigating through a challenging period, highlighted by several indicators suggesting investor interest might be waning.
The most striking is the Relative Strength Index (RSI) sliding to its lowest since November 2023, combined with a steep decline in daily active addresses. This confluence of factors points to a complex landscape for ARB, raising questions about its near-term price trajectory.
ARB Metrics Indicate Cooling Interest
The RSI, a momentum oscillator that measures the speed and change of price movements, has shown a noticeable decline from a high of 75 on March src3 to 5src. This indicates a shift from previously strong buying pressure to a more neutral stance.
Despite being in the neutral range, this gradual decline hints at a slowdown in market activity and potential challenges in price appreciation if the trend of diminishing interest continues.
ARB RSI. Source: Santiment.
Moreover, daily active addresses on the Arbitrum network have fallen to one of the lowest levels since January. This suggests a notable decrease in user engagement and transactions.
Indeed, this decline, particularly sharp since March 29, is a bearish signal, reflecting waning interest or use that could negatively affect ARB’s demand and price.
Read More: A Guide to Arbitrum Blockchain Explorer
ARB Active Addresses. Source: Santiment.
Arbitrum Price Prediction: Lower Lows
March saw a death cross occurrence in ARB’s Exponential Moving Averages (EMAs), a bearish signal typically heralding a potential bear market. Since this event, Arbitrum’s price has faced a sharp 44.62% correction.
If the current downtrend exacerbated by competition among Ethereum scaling solutions continues and critical support levels at $src.22 and $src.03 are breached, ARB could potentially fall to as low as $0.98.
ARB Price Chart. Source: TradingView.
Conversely, a shift in market sentiment could propel ARB to recovery targets of $src.75 or $src.80, offering hope for a bullish reversal amidst current market challenges.
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