Arbitrum Slips 2.46% to $1.17: Key Takeaways for ARB Traders on July 28, 2023

Arbitrum's native token ARB saw a decline of 2.46% over the past hour to trade at $1.17, with the asset's market cap standing at $1.53 billion. Trading volume for ARB amounted to $84.56 million over the last 24 hours.

Analyzing performance across different timeframes shows mixed signals for ARB currently. Over the past 24 hours, ARB is relatively flat, up just 0.01%. However, zooming out to the weekly view shows a decline of 10.38%, indicating increased selling momentum recently. Monthly performance also remains negative at -3.40%.

Will Arbitrum Bounce Back or Decline Further?

Given the bearish signals, Arbitrum could see a retest of 2022 support around $1.10 in the near-term. Below that, $1.00 represents the next key level to watch. Strong resistance stands at $1.25, making a quick recovery unlikely barring renewed buying interest.

However, ARB's innovations in scaling Ethereum via rollups continue to hold long-term potential. Any resurgence in layer-2 narrative could lift prices again. But in the short-term, downside risks prevail unless Bitcoin and the broader market see rallies.

What's the Optimal Trading Approach for ARB Now?

Traders should look to sell into any rallies towards $1.20 resistance. Fresh long positions could be considered on a break back above $1.25. Stop-losses on longs should be maintained around $1.10.

Long-term investors can accumulate on dips, but an allocation of 1% or less of a portfolio is prudent given current weakness. Periodic rebalancing also remains key.

Overall, ARB faces near-term bearish pressures but retains long-term upside potential. Prudent risk management is essential whether trading or investing at current levels.

Check our guide of the most promising crypto

Subscribe to BTC Peers

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.