Arbitrum’s ARBUSD price has dropped by over 30% in the past 24 hours, mainly due to its positive correlation with leading assets like Bitcoin and Ethereum. This article explores the reasons behind this significant decline and the impacts on the derivatives market.
Points
- ARBUSD price fell by over 30% in 24 hours.
- ARB trades at $0.44, its lowest price ever.
- Trading volume spiked by 151%, indicating a bearish market.
- Derivatives trading volume surged over 200%.
- Long liquidations reached $2.01 million.
Arbitrum’s ARBUSD has seen a dramatic 30% decline in the past 24 hours, reaching an all-time low of $0.44. This plunge is linked to its strong correlation with Bitcoin （BTCUSD） and Ethereum （ETHUSD）, both experiencing multi-month lows.
Despite ARB’s price drop, its daily trading volume has surged by 151%, hitting $589 million. This negative divergence suggests a bearish sentiment, with many investors selling off their assets due to negative news or broader market downturns.
In the derivatives market, ARB’s trading volume skyrocketed over 200%, while the 30% drop in open interest indicates that traders are exiting the market to avoid further losses. As per Coinglass, ARB’s futures open interest stands at $109 million, the lowest since October 2023.
The steep price decline has also triggered a surge in long liquidations. According to Coinglass, long liquidations hit $2.01 million, the highest since June 7. Long liquidations occur when traders with long positions are forced to sell their assets at a lower price to cover losses as the price falls.
###解説
- The current bearish trend in ARBUSD is heavily influenced by the broader market downturn in major cryptocurrencies like Bitcoin and Ethereum.
- A surge in trading volume during a price decline indicates a sell-off, often due to negative news or market sentiment.
- The drop in open interest in the derivatives market shows that traders are pulling out to avoid further losses, reflecting a lack of confidence.
- Long liquidations are a clear sign of bearish pressure, where traders are forced to sell to mitigate losses.
- Despite the current bearish bias, indicators like the RSI and MFI suggest ARB may be oversold and could potentially see a rebound.
The continued outflow of liquidity and the significant capital exit, as indicated by the Chaikin Money Flow （CMF）, underscores the current market weakness. If ARBUSD manages a rebound, it could potentially reach $0.99, although the prevailing bearish sentiment poses a significant challenge.
