Arbitrum volume has decreased from over $1 billion in December 2024 to $403 million.
Several old ARB tokens have remained dormant, signifying a negative price outlook.
ARB’s price trades below the Supertrend, indicating that it continues to face resistance.
ARB, the native token of the Ethereum layer-2 project Arbitrum, peaked at $2.40 roughly a year ago. However, the cryptocurrency has since dropped by 68% from that high.
This sharp decline in ARB’s price has also contributed to a noticeable decrease in trading volume compared to its value from a month ago. Will ARB price continue to decrease? Let’s find out in this analysis.
On Dec. 10, 2024, Arbitrum’s trading volume was over $1 billion. Trading volume measures the level of buying and selling volume around a cryptocurrency.
Increasing price accompanied by rising volume typically indicates a bullish trend. On the other hand, when the price decreases with falling or rising volume points to significant downward pressure.
As of this writing, the volume has decreased to $403 million while ARB price trades at $0.76. Given the current condition, it is unlikely that ARB’s price might undergo an extended correction.
Arbitrum Trading Volume | Credit: Santiment
Another indicator with this bias is the Mean Dollar Invested Age (MDIA). As the name implies, the MDIA tracks the average of all tokens on the blockchain weighted by the purchase price.
When the MDIA line trends downward, it indicates that previously dormant coins, particularly from older wallets, are being sent into circulation. This heightened market activity usually serves as a bullish signal.
On the flip side, when the MDIA rises, it means that several old tokens have remained stagnant which is the case with ARB. Should the metric’s reading continue to rise, ARB’s price might not experience a breakout in the short-term.
ARB Mean Dollar Invested Age | Credit: Santiment
ARB Price Prediction: Rebound Unlikely
Trading at $0.76, the Supertrend indicator has climbed above ARB’s price. The Supertrend indicator determines whether a cryptocurrency is in an uptrend or downtrend.
According to the daily chart, when the green segment of the indicator is below the price, it indicates an uptrend. However, when the red region of the Supertrend is above the price, it means the cryptocurrency has faced resistance.
Furthermore, the Money Flow Index (MFI) has dropped from a peak of 76.81. The MFI is a technical indicator that gauges the level of buying or selling pressure around a cryptocurrency.
When the reading rises, it indicates an increase in buying pressure. A decline in the MFI signifies selling pressure. With the MFI at 64.28, it means that ARB’s buying volume has decreased.
If this decline continues, then ARB’s price might slide to the 0.236 Fibonacci retracement at $0.64. If selling pressure intensifies, the token could decline to $0.46.
ARB/USD Daily Chart | Source: TradingView
However, ARB’s future potential might also depend on Ethereum’s (ETH) price action due to the strong correlation between both assets. Therefore, if ETH’s price jump, ARB could rebound. In that scenario, the altcoin could climb to surpass $1 again at the 0.786 Fib level.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
