The Arbitrum ARB is likely to print a new low due to mounting bearish pressure in the market. In fact, the token has seen double-digit losses over the past 24 hours, with the crypto trading approximately 96% below its all-time high at press time.
Both on-chain and off-chain readings appear to indicate strong selling pressure and weakening fundamentals. Together, these signals weighed on the altcoin’s near-term outlook.
Long Liquidations Eclipse Dwarf Shorts on ARB
The most striking signal over the past 24 hours was the lopsided liquidation split. At the time of writing this was evident in the perpetual futures market.
ARB liquidation data revealed which side of a perpetual market the price was acting on. Usually, a liquidation closes a leveraged position once the market exceeds its margin, and the magnitude of these forced losses speaks volumes.
Long traders absorbed $750,730 in liquidations over the period. Short positions only lost $7,480 during the same window, showing that the market may have moved firmly against bullish bets. For every dollar wiped out of short positions, long positions lost nearly $100.
The liquidation heat map, however, still left room for a rebound. Unfilled liquidity clusters appeared to be above the price at press time and could push it higher. The bearish scenario nevertheless remains dominant, with targets close to $0.074 if sales continue.
Stablecoins flow from the Arbitrum chain
On-chain flows also reinforced the bearish reading as liquidity flowed from the network. In fact, network activity also came to a halt at the same time, dampening the bullish case.
Stablecoins have left Arbitrum faster than they have entered since June 15. Only one day of net inflows occurred during this period.
Outflows totaled $236.48 million compared to $45.58 million inflows over the period. That leaves a net outflow of $190.9 million from the chain. A drain of this size typically follows users heading toward the exits, as net flows normally remain minimal in either direction.
The total value locked remained broadly stable during the same window. No significant capital came in or out, with the figure close to $1.285 billion. A flat TVL like this tends to hint at investors waiting on the sidelines, unsure of where the token might head next.
ARB tests key graphics support
On price charts, ARB appeared to be trading at a key support level. This area has been the source of three separate rallies in the past, and it would normally trigger another rebound from here.
However, indicators instead pointed to strong sales at press time.
The accumulation/distribution statement showed that holders were regularly offloading ARB into the market. In fact, the total volume reached 547.99 million ARB as the price traded lower on the charts.
If pressure continues to mount, ARB could slide towards $0.073, the low it last touched on June 6.
Final summary
- Traders who bet on a price recovery have lost much more than those who bet on a decline; a clear sign that sellers might have the upper hand.
- Money gradually left the Arbitrum network this month, indicating user withdrawal and loss of trust.
