Today, Crypto Lists will discuss Arbitrum (ARB) price estimates from a technical and fundamental analysis perspective.
Arbitrum (ARB) has weakened from $0.63 to $0.46 since August 24, 2024, and the current price stands at $0.49. But where is the price of Arbitrum (ARB) going next, and what can we expect from the rest of September 2024?
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Go directly to
- 1 A difficult September
- 2 Better performance at a significantly lower cost
- 3 The risk of further decline is still not over
- 4 Technical analysis for Arbitrum (ARB)
- 5 Important support & resistance levels for Arbitrum (ARB)
- 6 What speaks for the rise in the Arbitrum (ARB) price
- 7 What indicates the downfall of Arbitrum (ARB)
- 8 What do analysts and experts say?
A difficult September
Cryptocurrencies continued trending to the downside as recession fears weighed on risk assets ahead of Friday’s key jobs data report. Crypto investors are currently hoping that the US Federal Reserve will cut interest rates at the next FOMC meeting set to be held between September 17 and 18, as that will provide some relief and help inject more liquidity into the crypto market.
Bitcoin (BTC) declined more than 4% at one point Thursday and this situation also negatively influenced Arbitrum (ARB). Many crypto analysts say that it is yet uncertain whether Bitcoin will continue to trade near $55,000 amid ongoing sell-off but what is for sure is that the prices of many cryptocurrencies will decrease in value even more if Bitcoin falls again below $50,000.
Better performance at a significantly lower cost
Arbitrum is an Ethereum layer-two (L2) scaling solution that provides faster speeds at a significantly lower cost, with the same level of security as Ethereum. Layer 2 solutions are designed to improve the efficiency of Ethereum by processing transactions and smart contracts off-chain or in a manner that reduces the burden on the Ethereum mainnet. While Ethereum only handles 14 transactions per second, Arbitrum significantly outpaces it with 40,000 transactions per second. Transaction costs on Ethereum amount to several dollars per transaction, whereas on Arbitrum, they are approximately two cents each.
Arbitrum was developed by Offchain Labs, and it uses optimistic rollups to achieve its goal of improving speed, scalability, and cost-efficiency. It is also important to mention that Arbitrum derives its security from the Ethereum network, which provides consensus and finality for Arbitrum transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
It is important to say that Arbitrum launched Stylus-enabled Arbitrum chains on September 3rd and this new feature will allow users to write smart contracts in a variety of languages, expanding the possibilities for developers. The introduction of additional languages will bring a range of language-specific advantages, including familiar tools, frameworks, and enhanced functionality tailored to each language. Arbitrum is continuously working on new projects and according to the latest news, Arbitrum is set to launch the first NFT powered by Stylus, named Infinite Rainbows by Jimena Buena Vida, on September 9th. This NFT will be available for free minting on a specified platform.
The risk of further decline is still not over
The price of Arbitrum (ARB) is usually tied to the overall sentiment on the cryptocurrency market, and like many other cryptocurrencies, ARB lost value after Bitcoin weakened from its record highs. Not long ago, Arbitrum (ARB) was trading above $2.25 ( March 13, 2024), but since then ARB has significantly lost in value, and according to the current market situation, the risk of further decline is still not over.
Many crypto analysts say that it is yet uncertain whether Bitcoin will continue to trade near $55,000 amid ongoing sell-off but what is for sure is that the prices of many cryptocurrencies will decrease in value even more if Bitcoin falls again below $50,000. Analysts are currently worried because of a potential recession and during a recession, uncertainty in the global economy can cause a widespread sell-off in assets, including cryptocurrencies. This can lead to sharp declines in crypto prices, as investors look to move their money into more stable, less volatile assets like cash or gold.
Another negative information is that the crypto market already experienced a decline in user interaction and transaction activity. A slowdown in net inflows and decreased user activity are certainly negative factors for ARB that will continue to influence the price of this cryptocurrency in the weeks ahead. Arbitrum (ARB) is a highly risky investment and investors should consider that ARB can be subject to speculative trading, and speculative traders may take advantage of a broader market downturn and sell off their altcoin holdings, including ARB, contributing to its price decrease.
Technical analysis for Arbitrum (ARB)
Arbitrum (ARB) has weakened from $0.63 to $0.46 since August 24, 2024, and the current price stands at $0.49. The risk of further decline is still not over and in the weeks ahead, the price of ARB could continue to be under selling pressure. In the chart below, I marked the important resistance level, and as long the price of Arbitrum (ARB) is below this level, we can’t talk about a trend reversal, and the price of ARB remains in the SELL-ZONE.
Important support & resistance levels for Arbitrum (ARB)
On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. Arbitrum (ARB) remains under pressure, but if the price advances above $0.8, the next target could be an important resistance level at $1. The strong support level is $0.40, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.20.
What speaks for the rise in the Arbitrum (ARB) price
A period since March 13, 2024, has been negative for the price of ARB, but the positive information is that Arbitrum launched Stylus-enabled Arbitrum chains on September 3rd and this new feature will allow users to write smart contracts in a variety of languages, expanding the possibilities for developers. Crypto investors are currently hoping that the US Federal Reserve will cut interest rates at the next FOMC meeting and for the bulls to take again control of the price, a move above $0.8 would be beneficial.
What indicates the downfall of Arbitrum (ARB)
The downfall of Arbitrum (ARB) can be influenced by a wide range of factors, including negative news around Arbitrum, market sentiment, regulatory developments, macroeconomic trends, and more. The period since March 13, 2024, has been negative for ARB, and the bearish mood among ARB whales seems to be a major factor that influenced the ARB downtrend. The strong support level for ARB stands at $0.4, and if the price falls below this level, the next target could be $0.2.
What do analysts and experts say?
After hitting price levels above $2.25 on March 13, 2024, Arbitrum (ARB) has encountered significant losses. The risk of further decline is still not over and in the weeks ahead, the price of ARB could continue to be under selling pressure. Many crypto analysts agree that it remains uncertain whether Bitcoin will continue hovering around $55,000 amid the ongoing sell-off. However, one thing is clear: if Bitcoin drops below $50,000 again, the prices of many other cryptocurrencies are likely to decline even further.
Analysts are also expressing concern over the possibility of a recession, as economic uncertainty during such times often triggers widespread sell-offs across various assets, including cryptocurrencies. This can result in significant drops in crypto prices, as investors tend to shift their funds toward more stable and less volatile assets like cash or gold.
Arbitrum (ARB) is unpredictable and a risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. Keep in mind that Arbitrum (ARB) is a highly dynamic cryptocurrency; it can experience rapid falls, and it’s essential to conduct thorough research, stay informed about market developments, and be aware of the risks associated with investing in this cryptocurrency.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
