Arbitrum (ARB) Faces Network-Wide Decline as Whales Sit on Sidelines
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Arbitrum (ARB), the native token for the Arbitrum Layer 2 network, has faced substantial declines recently, hitting a low of $0.57 on July 5 before recovering slightly by 22%. User demand has sharply decreased, leading to a 46% drop in active addresses since June 21 and a 34% reduction in daily transactions from a peak of 3.5 million. This downturn has adversely affected Arbitrum’s network fees and revenue; network fees plummeted by 98% following the LayerZero airdrop. Senior Analyst Brian Quinliven noted that whale activities have dwindled, but this isn't necessarily negative, as whales might wait for increased market volatility. Despite the unfavorable price movement, whales continue to hold significant stakes in ARB. The Chaikin Money Flow indicator suggests a potential bullish divergence, hinting at a price rebound to $0.72 if selling pressures ease. However, if the downtrend persists, ARB could fall to $0.66.
Source: beincrypto.com ↗
