Arbitrum (ARB) faced renewed pressure in the market on Saturday, Feb 21, as a strong outflow of capital negatively impacted its already weak trend.
The ecosystem registered an outflow of $56.9 million in the last 24 hours, according to data by Artemis. The decline in capital further fueled concerns about the short-term stability of ARB.
Source: Artemis
As of press time, ARB is trading at $0.09987. The token has risen by 3.93% in the last 24 hours. The trading volume has decreased by 9.35% and is currently standing at $137.48 million. The price of the token has also reduced by 16.14% over the last week, according to CoinMarketCap.
Source: CoinMarketCap
ARB Defends Key Support With Accumulation Rising
Nehal, an analyst, highlighted that ARB continues to compress in a falling wedge after a long-term downtrend. The breakout, supported by a strong weekly close above resistance, could see a sharp move towards the 2+ supply zone.
Source: X
Moreover, another analyst, Butterfly, mentioned that Arbitrum is consolidating near the lower boundary of a descending channel on the three-day chart. The bulls are defending this area as quiet accumulation continues. If momentum picks up, it could see a strong move toward the $0.70 mark.
Source: X
Also Read: Arbitrum (ARB) Reports $6.74 Million in Timeboost Revenue
RSI and MACD Show Fading Bearish Pressure
The Relative Strength Index (RSI) indicated oversold territory. The RSI reads at 28.96, while the signal line stood at 28.49. The indicator indicated a high volume of selling pressure over the entire period. This suggests a weakening of downside pressure.
The Moving Average Convergence Divergence (MACD) indicator also indicated low strength. The MACD line stood at -0.0159, while the signal line sits at -0.0168. The histogram stands at 0.0010. The narrowing gap indicated a weakening of bearish pressure.
Source: TradingView
Declining Volume and Open Interest
CoinGlass data shows that the volume has decreased by 10.44% to $304.93 million, while the open interest declined by 1.71% to $115.35 million. The OI-Weighted Funding Rate stood at 0.0093%.
Source: CoinGlass
The indicators suggest low conviction and low participation. Analysts are now watching to see if the buying pressure can improve the volume at current price levels. The next movement for the token now depends on volume, momentum, and the reaction to the recent outflows.
Also Read: Litecoin (LTC) Eyes $68 Target as Resistance Test Signals Potential Upside