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The short term price action and ARB sentiment were bearish. This showed that further retracement to $1.16 was possible, but does not indicate that a downtrend below $1.1 or $1 was ready to begin.
arbitration [ARB] has witnessed steady growth in the months since the token airdrop. In terms of liquidity flow, the protocol saw an increased inflow, which was a strong sign of the increasing interest in the project. The launch of ZepetoX [ZTX] could increase this interest.
Read Arbitrums [ARB] Price Forecast 2023-24
The price charts showed that the past six weeks have been positive after the losses ARB suffered at the end of May. With the recent gains, ARB established a bullish structure on the 1-day time frame and the move to $1.3 was a key development.
The lower time frame ARB charts were not as solidly bullish
The 4-hour chart showed that the market structure was bearish as ARB dipped below the higher low at $1,234. Momentum was also about to turn bearish as the RSI teetered just below the neutral 50 level.
Even after July 14, the OBV has not made a profit. Instead, it faced a sharp decline on July 18, which showed that market participants lacked optimistic beliefs in the market. However, this could start to change.
The $1.3 zone is critical. It had served as support at the end of April and functioned as resistance for the past week. Sellers are strong in that region, but it was possible that ARB buyers could push prices back up after a retracement.
The Fibonacci retracement levels showed that the $1.23, $1.2 and $1.16 levels would act as support if ARB prices continued to fall. But until they are all beaten, the bullish bias remains.
How much are 1, 10 or 100 ARB worth today?
Declining buyer power in the spot markets aided the bearish argument
The Open Interest has fallen alongside prices over the last 24 hours. This showed discouraged bulls in the futures market and emphasized bearish sentiment. The spot CVD was also in a downward trend.
While the funding rate remained positive, the show bears had an advantage in the short term. It remains to be seen if the bulls can start another rally or if the bears take control again.
This post Arbitrum faces falling demand even as prices climb above $1.2
was published first on https://ambcrypto.com/arbitrum-faces-drop-in-demand-even-as-prices-surf-above-1-2/