Arbitrum (ARB) Price Poised to Chart a New All-Time Low

Arbitrum’s (ARB) price is in for a major drawdown looking at not just the chart pattern but also the investors’ behavior.

Whether ARB ends up dropping to $0 or save skin before then is something to look out for.

Arbitrum Investors Prepared for Losses

Arbitrum’s price could be looking at a new all-time low as the optimism among ARB holders has completely vanished. Arbitrum investors have been experiencing consistent losses on their transactions since mid-April. This ongoing trend is clearly highlighted by the Realized Profit/Loss metric, which underscores the financial challenges faced by the investors.

The persistent losses have significantly impacted investor sentiment, leading to a noticeable shift in behavior. Previously, many investors adopted a HODLing strategy, holding onto their assets in anticipation of long-term gains.

However, the sentiment of HODLing among Arbitrum investors has completely disappeared. The prolonged period of losses has eroded their confidence in this approach.

Arbitrum Realized Profit/Loss. Source: Santiment

As a result, investors are now focusing on distribution strategies, as indicated by the mean coin age metric. Mean coin age measures the average age of all coins in a network, reflecting how long they’ve been held without being moved.

An increasing mean coin age suggests accumulation and holding, while a decreasing age indicates higher trading activity. This shift suggests a preference for liquidating assets rather than holding onto them, reflecting a more cautious and reactive investment approach.