After several attempts to bounce back from its sharp decline at launch, Arbitrum [ARB] lost 16.58% of its value during the past week. Even though the token is not the only one in this line, the decline showed that it has been among the top 50 market capitalization performers’ worst performers.
Despite its lackluster performance, the number of ARB holders has increased steadily since March 25. Token Terminal claims that the growth was exponential, which enabled the number of holders to surpass 640,000. This indicates an increase in the overall number of organizations that have added ARB to their portfolio.
Additionally, given that the effects of increasing accumulation may not be immediate, a rise in this statistic typically indicates that a token has a huge potential for long-term profitability.
While the ARB fanfare may have diminished, its development activities have not. The metric measures the contribution of developers to network enhancements. Santiment stated that the development activity was 15.31 as of the time of writing.
The present value was still quite near the peak in February 2023, although being muted. This demonstrates the commitment of the Arbitrum developer community to the project’s goals. Therefore, if maintained, it might also support a bullish run.
According to the weighted sentiment data, ARB’s situation was not entirely shining. At the time of publication, the metric was at its most pessimistic level since the token’s launch on the market.
The reduction suggested that the fanfare surrounding ARB was on the verge of extinction because the weighted sentiment takes social loudness perception into account. But this metric’s state might need to improve for Arbitrum to succeed over the long term.
ARB has struggled to escape the red regarding price movement, shrinking 4% over the past day. The 20-day Exponential Moving Average (EMA), shown in blue on the four-hour ARB/USD chart, was lower than the 50-day EMA, shown in yellow.
A countertrend movement like this suggests that a short-term bullish trend may not be justified. Holders’ expectations of a rise, however, may not materialize as quickly as could be anticipated based on the technical forecast. The 200-day EMA (orange) and the 50 EMA are crossed below as of this writing. As a result, it might be difficult to start a fresh upswing within the given time frame.