Arbitrum has gone through a challenging period in the past few months with a downward trend in its price. However, there are indications that the ARB price may reverse its downward trend. There is evidence that buyers are gradually accumulating for a new rally.
Optimism is prevailing in the cryptocurrency markets following the storm created by Binance. Analysts suggest that there are no longer any obstacles ahead of Bitcoin ETFs. According to Bloomberg analysts, it is believed that Bitcoin ETF approval will most likely happen in January 2024 with a 90% probability.
The approval of Bitcoin ETF is expected to create a positive atmosphere for altcoins as well. This situation can also lead to a buying frenzy, and Arbitrum is seen as one of the leading candidates for these purchases.
Arbitrum witnessed a 160% increase in the number of active addresses between November 21-23. Active addresses rose from 11,357 to 29,435. This increase is considered an indicator of investor interest and shows that price dips are being bought.
According to the Non-Performing Loans (NPL) metric within the network, ARB worth $3,060,000 was sold at a loss. While some may incur losses during such a sell-off, it is seen as an accumulation opportunity for long-term holders. Additionally, the Market-Value-to-Realized-Value (MVRV) ratio of Santiment, which measures the unrealized profits of ARB buyers, shows a decrease from approximately 38% on November 10 to 4% at the time of writing. This decline indicates the resetting of unrealized gains for Arbitrum and an increased probability of an uninterrupted rally not threatened by sellers.
Arbitrum’s price is currently trading at $1.03. However, if the bears persist, the price could reach $1.12 with a 9% increase. If the price surpasses this hurdle, it could test the critical resistance level of $1.29. However, if the bears fail, alarm bells will ring for ARB, and the price could drop to $0.85. If ARB cannot hold onto this critical support level, the price could decline further to $0.76.