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- In the last 24 hours, close to a million ARBs were sold by a single company.
- Fund inflows have declined over the past few days.
Arbitrum (ARB) has recently experienced a price decline after a period of time attempting to establish new price levels.
This decline can be partially attributed to increased selling pressure that has occurred over the past few days.
Arbitrum falls below $2
An examination of the Arbitrum price on AMBCrypto’s daily timeframe chart reveals a notable decline over the past few days. This was especially important considering previous attempts to start an upward trend.
Specifically, between February 20th and 21st, the price of ARB fell 8.78%, falling in the $2 range.
At the time of writing, it was up slightly by 0.2% and ARB was trading at around $1.88.
Source: Trading View
Moreover, the analysis of the chart’s trading volume showed that sales volume dominated the overall trading volume trend during the two days of the downward trend.
Additionally, the short-term moving average (yellow line), which previously served as support, has now turned into resistance near $1.9 and $2.
The relative strength index (RSI) also showed that ARB is in a bearish trend. At the time of writing, RSI was below the neutral line, suggesting a bearish trend, albeit relatively weak.
Selling contributed to the price decline
sugar spot on chainThe recent Arbitrum price drop may be related to significant selling in Convex Finance.
Notably, Convex sold 901,392 ARB (worth $1.63 million) in the last 24 hours, at a selling price of approximately $1.80 per ARB token.
For the uninitiated, when Convex received ARB in an airdrop in April 2023, it was worth approximately $1.2 million. This means that Convex has earned over $400,000 in recent sales.
Declining interest in ARBs
AMBCrypto’s view on the derivative side of Arbitrum shows relatively low interest in ARB at the time of press.
Realistic or not, the ARB market cap in BTC terms is:
Coinglass’s open interest has seen a decline in funds, which at the time of writing stands at around $254 million.
As of this writing, the funding rate is around 0.014%, indicating that buyers are being less aggressive but still maintaining control.