Deep Dive
1. Post-Launch Profit-Taking (Bearish Impact)
Overview
ARC surged 25% on December 1, 2025, hitting $0.05034 amid meme hype and Solana’s low-fee appeal (Weex). However, with no major ecosystem updates since, traders likely took profits – volume spiked 50.54% to $10.25M during the selloff.
What this means
New meme coins often face volatility as early buyers exit. The lack of immediate utility (beyond speculative trading) and fully circulating supply (999M ARC) amplified downside pressure once momentum faded.
What to watch
Holdership concentration shifts: Decentralized wallets initially reduced manipulation risk, but whale accumulation could signal volatility ahead.
2. Technical Breakdown (Bearish Impact)
Overview
Key indicators turned negative:
- MACD: Histogram (-0.0010648) signals bearish momentum.
- RSI: Dropped from 70+ (overbought) to 40.87 (neutral), suggesting room for further declines.
- Price vs SMA: ARC trades below its 7-day SMA ($0.0400), a bearish near-term signal.
What this means
Technical traders likely accelerated selling as ARC broke below $0.04, a psychological support level. The next critical floor is $0.03103 (78.6% Fibonacci retracement).
What to watch
A close above the 30-day SMA ($0.0359) could stabilize prices, while a drop below $0.031 might trigger panic selling.
3. Risk-Off Altcoin Sentiment (Bearish Impact)
Overview
The crypto Fear & Greed Index sits at 30 (Fear), with Bitcoin dominance at 58.4% – a 30-day high. Investors are fleeing altcoins for BTC’s perceived safety amid market uncertainty.
What this means
ARC, as a speculative AI/meme hybrid, is disproportionately hit by sector rotation. Altcoins collectively lost ground, with the Altcoin Season Index at 18 (0 = full Bitcoin dominance).
Conclusion
ARC’s drop reflects profit-taking after its hype-driven launch, technical breakdowns, and a risk-averse market favoring Bitcoin. While its AI narrative and Solana’s ecosystem offer long-term potential, near-term volatility is likely until broader sentiment improves.
Key watch: Can ARC hold $0.031 support, and will its team announce utility upgrades to counter the “meme coin” stigma? Monitor the Fear & Greed Index and BTC dominance for sector cues.