The partnership between trading platform Robinhood and Arbitrum project failed to attract investors, leading to a sharp drop in the ARB token price.
Overview of ARB's decline post-announcement
The Arbitrum token (ARB) fell over 13% in the past 24 hours, trading at $0.32 with a market cap of $1.61 billion. This occurred shortly after Robinhood confirmed its partnership with Arbitrum at an event in Cannes. The collaboration is set to create the Robinhood Chain, a blockchain infrastructure that will allow EU-based users to trade U.S. equities on-chain.
Technical analysis of ARB
On the 4-hour USDT chart, ARB is showing several bearish technical signals suggesting a likely continuation of its decline. The 50-day simple moving average (SMA) is about to cross below the 200-day SMA, a formation widely regarded as a strong bearish indicator known as a 'death cross'. Momentum indicators further support a bearish outlook, as the MACD has crossed below the signal line, indicating waning bullish momentum.
Future prospects for Arbitrum
Data indicates that ARB may continue its decline toward the immediate support level at $0.31. A breakdown below this level could expose the token to further downside, with the next major psychological and structural support resting at $0.28.
The partnership between Robinhood and Arbitrum has disappointed the market, demonstrating that even strong announcements may not always lead to positive asset price changes.
