Arbitrum falls 10% due to weak on-chain activity – can ARB hold the level of $0.48?

The price of Arbitrum (ARB) has fallen 10% in the last 24 hours. This Layer 2 Token (L2) of Ethereum is among the coins with the largest bearish trends, alongside Fartcoin (FARTCOIN), Pump.fun (PUMP), and Aerodrome Finance (AERO).

In fact, the entire cryptocurrency market has witnessed a decline of 1.75%, with the total market capitalization dropping to 3.97 trillion USD. These declines have been driven by a decrease in the Funding Rate and open interest across the market.

Why has the price of ARB fallen today?

According to data from Tokenomist, Arbitrum is expected to unlock 92.65 million ARB tokens, equivalent to a value of 40.33 million USD. This amount accounts for 2.09% of the total circulating supply. Over the past three months, 277.95 million ARB have been brought into circulation. With the current supply at 5.15 billion, the latest increase is 1.79%, indicating short-term bearish pressure.

On-chain data from Arbiscan also shows that activity on the network is falling sharply. Specifically, the total transaction fees reached 11.62 ETH, as of the time of reporting, which has been heavily impacted with a decrease of 74% after the number of transactions fell by 4.72%.

With 63,413 new addresses and only 127 verified contracts each day, this decline is becoming increasingly severe.

Source: ArbiscanThese two indicators have fallen by 46% and 11.8% respectively, reflecting a decline in user interest in Layer 2 solutions.

ARB strives to hold above the reversal zone

On the chart, Arbitrum is struggling to maintain the reversal zone of $0.48 after being rejected near the $0.60 level. Despite a sell-off that began late on August 15 and extended into the following day, the overall price structure remains bullish, with ARB still trading above the upward trend line for the past 10 days.

The Bollinger Bands indicator is pointing downwards, indicating an increase in volatility. If ARB can hold above the reversal zone of 0.48 USD, the possibility of returning to the resistance level of 0.60 USD is feasible. However, if this level cannot be maintained, the price may fall to 0.43 USD or lower.

Source: TradingViewThe MACD indicator has also turned red, providing further evidence that this cryptocurrency has fallen more than 10%. This indicator shows the increasing dominance of sellers compared to buyers.

Overview of TVL, DEX, and trading volume

As of the time of the press, Arbitrum recorded a total trading volume of 1.70 billion USD, of which DEX trading reached 905 million USD and Perps trading volume was 870 million USD. Despite the sell-off today, the ecosystem still shows resilience.

The total value locked (TVL) has increased to 5.59 billion USD, trading near its peak in December 2024 and approaching an all-time high of 6.17 billion USD.

Source: DefiLlamaThis shows that TVL is still maintaining strength, indicating that this altcoin is not completely defeated. Instead, ARB is facing a short-term correction, sharper than similar coins like Optimism (OP).

Mr. Teacher