Reserve

Arbitrum

Bitcoin

April

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/" rel="noopener noreferrer nofollow">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/" rel="noopener noreferrer nofollow">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">
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 Arbitrum Price Analysis| Tradingview
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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/" rel="noopener noreferrer nofollow">EMAs</a> (20, 50, 100, and 200) hints that the path to least resistance is down.
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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/" rel="noopener noreferrer nofollow">Arbitrum Price Analysis: $0.60 Support in Jeopardy as User Activity Plummets</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

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

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