The volatility in the market, especially concerning Bitcoin and altcoins, has been on the rise. A notable example is ARB Coin, which saw a significant drop in price following the unlocking of 1.1 billion ARB tokens in March. Currently, the price of ARB Coin is at $1.45, and after reaching a high point about 20 days ago, it has experienced a decrease of over 30%. The altcoin has found support around the $1.4 mark, with efforts from buyers to prevent further losses.

The Relative Strength Index (RSI) dropped from 75 on March 13th to 51, aligning with the massive token unlock and indicating a lower investor appetite due to the increased token supply. This signaled a potential downturn in the price of ARB Coin, and warnings were issued regarding significant losses during that period.

ARB Coin Price Forecast

Recent accelerated sales and the possibility of declining investor demand have created uncertainty regarding a price rebound. Additionally, daily active addresses on the Arbitrum network have reached their lowest levels since January 2024, which could further dampen optimism for price performance.

Typically, an uptick in network activity correlates with a price increase in altcoins. While transaction fees have been reduced with Dencun, this change has not had an immediate positive impact on the price. The occurrence of a death cross in ARB's Exponential Moving Averages (EMA) in March, historically signaling substantial corrections, has added to the bearish sentiment in the market.

Given the escalating competition among Ethereum layer2 solutions, ARB Coin could face further downside pressure. However, a shift in market sentiment or unexpected developments that drive demand for ARB might lead to a recovery from current levels, targeting resistance levels between $1.78 and $1.8.

This article was first published on COINTURK NEWS: ARB Coin Price Dynamics and Analyst Expectations