Is Arbitrum Going to Zero? ARB Price Sells Off as This Low Cap Gem Secures $300,000 in Funding
Leading Ethereum layer-2 scaling solution Arbitrum (ARB) is continuing a bleak downside slide following rejection from the upper trendline - leaving some dejected bag-holders asking 'Is Arbitrum Going to Zero?'.
This comes following the formal end of the Arbitrum airdrop claim, which saw a whopping 69.4 million unclaimed (accounting for 0.69% of ARB’s total supply of 10 billion tokens).
The unclaimed tokens - valued at $56m - were transferred to the Arbitrum DAO on September 24.
With the airdrop now over, all eyes have shifted to Post.Tech - an Arbitrum-based SocialFi platform to rival popular ERC-20 Friend.Tech - in a move expected to catalyze significant growth for ARB's total-value locked in a similar style to Stars Arena on AVAX.
As Arbitrum price action continues to slide, ARB is currently trading at a market price of $0.88 (representing a 24-hour change -0.26%).
This comes as price rejects -10% from upper trendline resistance in a tumble back down to the 20DMA (currently stood at $0.85).
While price action is in retracement, support appears to be well-defended at the 20DMA - and this is likely to limit further downside on the short-time frame.
And significantly, the retracement move down to 20DMA support has improved technical indicator readings - with the RSI cooling off substantially to a neutral signal at 50.25.
This could suggest that the price is now primed to press to the upside once more, a view reinforced by the MACD which is displaying a bullish divergence at 0.0103.
Overall, this leaves Arbitrum in surprisingly strong form in the face of downside price action, with conditions building for a timely bounce on the chart.
To the upside, a bounce would see ARB targeting higher support at $0.9375 (a possible +6.43%).
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