Reserve Dollar

Arbitrum

Bitcoin

April

Reserve

The cryptocurrency market saw an increase in supply pressure this week, beginning with a sharp downturn in Bitcoin from $70,000 to $66,254—a 5% drop. This decline halted the recovery trend across most major altcoins and heightened the potential for corrections. Concurrently, the Arbitrum price analysis indicates a 1.38% decrease today to $0.69, suggesting a significant reversal from crucial resistance. 
Also Read: <a href="https://coingape.com/bitcoin-news-coinshares-exec-identifies-key-hurdles-for-btc-strategic-reserve/">Bitcoin News: CoinShares Exec Unveils Major Hurdle For BTC Strategic Reserve</a> 
<h2 id="span-style-font-weight-400-arbitrum-price-analysis-will-the-falling-wedge-pattern-trigger-a-bullish-reversal-span">Arbitrum Price Analysis: Will the Falling Wedge Pattern Trigger a Bullish Reversal?</h2> 
The recovery momentum in the crypto market has witnessed a notable drawdown since last week as Bitcoin struggles to sustain above $70000. The overhead supply has sparked a correction in several major altcoins, including Arbitrum. 
On July 23rd, the Arbitrum price analysis showcased a sharp reversal from $0.828 resistance, which plunged the asset by 16.8% and hit $0.69. A deeper analysis of the daily chart shows this bear cycle within the formation of a <a href="https://coingape.com/education/falling-wedge-pattern-what-to-do-if-it-appears-on-a-crypto-chart/">falling wedge pattern</a>. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/b/bTgbiGvc.png" alt="BINANCE:ARBUSDT Chart " width="1946" height="893">
 <figcaption class="wp-caption-text">
 Arbitrum Price Analysis| Tradingview
 </figcaption>
</figure> 
The pattern’s two converging trendlines, acting as dynamic resistance and support, have led to a downtrend since April 2024. The coin price trading below the daily <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/">EMAs</a> (20, 50, 100, and 200) hints that the path to least resistance is down. 
Also Read: <a href="https://coingape.com/senator-cynthia-lummis-proposes-bitcoin-solution-as-us-debt-hits-35-tln/">Senator Cynthia Lummis Proposes Bitcoin Solution As US Debt Hits $35 Tln</a> 
As per data sourced from Dune Analytics, the number of active addresses on the Arbitrum network has significantly declined over the past three months. From a May peak of 4.01 million, active addresses have decreased to 648.2 thousand, marking an 83.84% drop. A similar downturn is observed in the influx of new users, with the on-chain metric plummeting from 2.7 million to 181.6 thousand—a 93.27% reduction.&nbsp; 
<img decoding="async" class="aligncenter size-full wp-image-210179" src="https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02.png" alt="Active Addresses" width="1459" height="583" srcset="https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02.png 1459w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02-300x120.png 300w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02-1224x489.png 1224w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02-768x307.png 768w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-02-150x60.png 150w" sizes="(max-width: 1459px) 100vw, 1459px"> 
This substantial reduction in both active and new users suggests a waning interest or shifting user base, which could impact network activity and influence the valuation of assets within the ecosystem. 
<img decoding="async" class="aligncenter size-full wp-image-210180" src="https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27.png" alt="New Arbitrum Users " width="1459" height="583" srcset="https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27.png 1459w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27-300x120.png 300w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27-1224x489.png 1224w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27-768x307.png 768w, https://coingape.com/wp-content/uploads/2024/07/image_2024-07-30_23-04-27-150x60.png 150w" sizes="(max-width: 1459px) 100vw, 1459px"> 
If bearish momentum persists, the Arbitrum price analysis shows a 16% down risk to retest $0.565 support, followed by $0.46. 
On a contrary note, the falling wedge pattern is now a bullish reversal pattern that could bolster buyers to challenge the overhead trendline. The potential breakout will accelerate buying momentum and push the asset back to $0.24. 
The post <a href="https://coingape.com/markets/arbitrum-price-analysis-0-60-support-jeopardy-user-activity/">Arbitrum Price Analysis: $0.60 Support in Jeopardy as User Activity Plummets</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Arbitrum Price Analysis: $0.60 Support in Jeopardy as User Activity Plummets

Table of Contents

Coingape News Media

Other articles published on Jul 30, 2024

Ethereum Price Stabilizes: Can ETH Gain Traction for an Upswing?

Trust Wallet Announces Partnership With TON Ecosystem

Hong Kong Blockchain Group Advocates for Bitcoin in Forex Reserves

XRP déjà vu: Is another 60,000% price surge on the horizon?

Russia Greenlights Crypto For Cross-Border Payments, Tightens Mining Rules

Bitget Launches Global Crypto Experience Month to Empower Youth

Join our free newsletter for daily crypto updates!