The price of Arbitrum (ARB) has fallen by 31.67% in the past month, with a further 4.44% drop in the last 24 hours. Analysts warn that the token could soon hit a lifetime low as market dynamics such as increased selling by large holders, shorter holding periods, and a surge in transaction activity contribute to the downward trend. While blockchain data shows increased network activity and the number of active addresses has grown, this has not translated into bullish momentum, as it is linked to increased sell-offs. The Average Time Held of Coins Transacted has decreased by 79.96% in the past month, indicating waning confidence in the token as holders offload their assets more rapidly. Large investors have been offloading substantial amounts of ARB, intensifying bearish sentiment. With whales continuing to reduce their holdings, further declines are likely, which could push ARB below crucial support levels. However, if ARB can hold above $0.4685, there is potential for a relief rally. The introduction of USDT0, a new cross-chain stablecoin from Tether, on the Arbitrum network could aid ARB's recovery by boosting adoption and offsetting selling pressure.



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