Arbitrum ARB Dips Over 10% on Token Unlocks, TVL Holds Near Record
Arbitrum ARB plunged over 10% after 92.65 million tokens were unlocked, intensifying bearish pressure. On-chain metrics weakened sharply: transaction fees fell 74% to 11.62 ETH, daily transactions dropped 4.7%, new addresses declined 46% and verified contracts fell 11.8%. Funding rates and open interest also contracted amid weakening trader sentiment. ARB tests key support at $0.48 after rejection near $0.60; failure to hold this flip zone could see a slide toward $0.43, while a rebound targets $0.60. Despite the sell-off, Arbitrum’s Total Value Locked rose to $5.59 billion, nearing its $6.17 billion peak, and decentralized exchange and perpetual volumes remain robust at around $905 million and $870 million. Traders should watch upcoming token unlock schedules, on-chain activity, and flip-zone levels for potential trading opportunities or further downside.
Bearish
The ARB price slump reflects short-term selling pressure from unlocked tokens and weak on-chain metrics. Additional supply entering the market, coupled with declining transaction fees, volumes and new addresses, suggests waning network demand. Technical indicators remain bearish with MACD divergence and a failed flip zone test, pointing to potential further downside toward $0.43. Though TVL resilience indicates strong liquidity, the prevailing sentiment and supply overhang are likely to keep ARB under pressure in the near term, with any recovery hinging on a rebound in network activity or a slowdown in token unlocks.