- ARB has declined by 38.9% over the past month.
- Arbitrum’s decline leaves 99% of holders at a loss, risking total crash.
Since hitting $0.956 a month ago, Arbitrum [ARB] has experienced sustained downward pressure. Over this period, the altcoin has reached a new all-time low of $0.37 recorded three days ago.
Since hitting this low, ARB has recorded a moderate recovery. In fact, as of this writing, Arbitrum was trading at $0.459, hiking by 6.38% on daily charts.
Prior to these gains on daily charts, the altcoin had been on a downward trajectory, declining on weekly and monthly charts by 20.11% and 38.9%, respectively.
These sustained losses over the past month have turned into a tragedy for ARB holders.
Arbitrum holders in profit hit 0%
According to AMBCrypto’s analysis of IntoTheBlock, the recent price drop has left none of the ARB holders in profit.
At press time, 0% of Arbitrum holders were in profit while 99% of the holders were at a loss, and only 1% were at the breakeven point.
Source: IntoTheBlock
Such a drop implies that holders have panic sold every time prices try to rebound, fearing further losses.
Equally, it risks a continued lack of confidence where all holders might decide to sell at a loss, causing the altcoin’s prices to crash.
An inside look at Arbitrum
With 0% of ARB holders in profit, the altcoin shows strong bearish sentiment, with sellers dominating the market and causing a strong downward momentum.
Source: TradingView
This seller dominance was evident as Arbitrum’s CMF declined to -14 at press time. When CMF hits negative levels, it implies that on average, sellers are strong with a higher pressure constantly outweighing buyers.
This results in continued downward pressure on prices.
Source: Messari
Looking further, Arbitrum’s Sharpe ratio has declined to the negative zone, hitting -5.49. When the Sharpe ratio hits negative, it suggests an asset’s returns are lower than the risk-free rate.
Thus, ARB holders are not compensated relative to the risk they are taking. This makes it less attractive to investors, and so they avoid the asset.
Source: IntoTheBlock
Additionally, Arbitrum whales turned increasingly bearish as they continued to close their position. As such, large holders have sold over 550.2k ARB tokens over the past day.
This implied that whales were selling more than they were accumulating, as evidenced by the netflow, which had reached -86.8k.
When whales turn to sell, it implies that large holders lack market confidence and expect prices to drop further.
Source: Coinglass
The selling activity was high across all market participants, as inflows into exchanges spiked.
Over the past two days, investors have sent more ARB tokens into exchanges than they have withdrawn, reflecting strong bearish sentiment.
Read Arbitrum’s [ARB] Price Prediction 2025–2026
What’s next?
As Arbitrum drops to historical lows, leaving 0% of holders in profit, investors are losing confidence. As such, bearish sentiments are strong in the market, which could see ARB even drop further.
If this sentiment holds, ARB could decline to $0.42. A breach below here could see the altcoin hit a new all-time low. Conversely, if buyers take this opportunity to buy the dip, ARB could see a reversal and reclaim $0.5.
