Arbitrum: Traders dial down excitement as ARB prices drop
Arbitrum has seen some declines in the year, but this has not disturbed the trend of its TVL as it continues to rise.
- ARB prices declined by over 3%.
- TVL has continued to rise despite the recent decline in price.
Over the recent days, Arbitrum [ARB] has experienced a fluctuating price trend. Nevertheless, despite these price fluctuations, the Total Value Locked (TVL) within its network has reached an all-time high.
Arbitrum recovery comes to a halt
Between the 12th and 14th of January, the daily timeframe chart for Arbitrum showed consecutive declines. The most significant drop occurred on 14th January, reaching around 6.7%.
This decline marked the second-largest within the year thus far. Following these downturns, Arbitrum made recovery attempts, showcasing consecutive uptrends on 15th and 16th January, resulting in a combined uptrend of nearly 6%.
However, at the time of this writing, the cryptocurrency has resumed its decline, experiencing a decrease of over 3%, with its current trading price at approximately $2.
Arbitrum’s price was above its long and short moving averages, represented by the blue and yellow lines, respectively. The yellow line served as a support level at around $1.4.
Additionally, the Relative Strength Index (RSI) was above 60 at the time of writing, indicating that ARB was currently in a bull trend. It’s worth mentioning that this price trend deviated from the general market trend.
ARB traders reduce excitement
The Arbitrum Funding Rate showed a recent decrease in traders’ enthusiasm over the past few weeks. Analysis of Coinglass data showed a decline in the Funding Rate from around 0.06% to about 0.009%. As of this writing, it was around 0.01%.
Additionally, an examination of the Open Interest showed a reduction in activity. On 12th January, the Open Interest was over $340 million, but it has now decreased to around $313 million.
The observed state of the Funding Rate and Open Interest suggests that buyers are still dominant, although their aggressiveness has diminished.
Read Arbitrum (ARB) Price Prediction 2024-23
Arbitrum’s TVL shoots to highest point
An examination of the Arbitrum Total Value Locked (TVL) on DefiLlama showed a consistent uptrend over the past few months. The chart showed that the upward trajectory started around October and has persisted.
As of this writing, the TVL was around $2.6 billion, marking the highest point in the network’s history. The previous peak in TVL was around $2.5 billion.
