Arbitrum (ARB) Price Prediction: Forming New Lows, Prepared for Losses

Arbitrum's (ARB) price is in for a major drawdown looking at not just the chart pattern but also the investors' behavior.

After hitting an all-time high of $1.68 in April, Arbitrum’s (CRYPTO: ARB) price has been on a continuous downtrend, with lows of $0.73 being hit in early June. Now, technicals show that ARB might be headed to hit a new all-time low or even hit $0.

What Happened: Arbitrum investors have been experiencing a difficult time with losses on their transactions since mid-April. This trend is highlighted by the Realized Profit/Loss metric, which underscores the financial challenges faced by the investors.

The persistent losses have impacted investor sentiment, leading to a shift in behavior. Previously, many investors adopted a HODLing strategy, anticipating long-term gains.

However, the sentiment of HODLing among Arbitrum investors has vanished. The prolonged period of losses has eroded their confidence in this approach.

Now, investors are focusing on distribution strategies, which is indicated by the mean coin age metric.

Mean coin age measures the average age of all coins in a network, reflecting how long they’ve been held without being moved. An increasing mean coin age suggests accumulation and holding, while a decreasing age indicates higher trading activity.

This shift suggests a preference for liquidating assets rather than holding onto them, indicating a more cautious and reactive investment approach.

Arbitrum Price Prediction: Arbitrum’s price is observing the formation of a head and shoulders pattern. This pattern is a bearish chart formation that indicates a potential trend reversal.

The formation consists of three peaks: a higher middle peak (head) is situated between two lower peaks (shoulders).

Based on the technical pattern, the potential drawdown could send the altcoin down to $0 as the target is 100% below the neckline at $0.92.

However, this is not possible as even during the FTX collapse, its native token (FTT) did not slip to $0.

Thus, the more practical outcome is Arbitrum’s price hitting a new all-time low. The current ATL is at $0.73 and marking a lower low below this would not be surprising.

On the upside, if by the mercy of ARB holders, the altcoin manages to bounce back Arbitrum’s price could bounce back.

Potentially breaching the neckline at $0.92 will enable recovery and reclaiming $1.0 will invalidate the bearish thesis.

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