Arbitrum: Traders dial down excitement as ARB prices drop

• ARB prices declined by over 3%.
• TVL has continued to rise despite the recent decline in price.

Over the recent days, Arbitrum [ARB] has experienced a fluctuating price trend. Nevertheless, despite these price fluctuations, the Total Value Locked (TVL) within its network has reached an all-time high.

Arbitrum recovery comes to a halt

Between the 12th and 14th of January, the daily timeframe chart for Arbitrum showed consecutive declines. The most significant drop occurred on 14th January, reaching around 6.7%.

This decline marked the second-largest within the year thus far. Following these downturns, Arbitrum made recovery attempts, showcasing consecutive uptrends on 15th and 16th January, resulting in a combined uptrend of nearly 6%. 

Source: Trading View

However, at the time of this writing, the cryptocurrency has resumed its decline, experiencing a decrease of over 3%, with its current trading price at approximately $2.

Arbitrum’s price was above its long and short moving averages, represented by the blue and yellow lines, respectively. The yellow line served as a support level at around $1.4.

Additionally, the Relative Strength Index (RSI) was above 60 at the time of writing, indicating that ARB was currently in a bull trend. It’s worth mentioning that this price trend deviated from the general market trend.

ARB traders reduce excitement

The Arbitrum Funding Rate showed a recent decrease in traders’ enthusiasm over the past few weeks. Analysis of Coinglass data showed a decline in the Funding Rate from around 0.06% to about 0.009%. As of this writing, it was around 0.01%. 

Additionally, an examination of the Open Interest showed a reduction in activity. On 12th January, the Open Interest was over $340 million, but it has now decreased to around $313 million.

The observed state of the Funding Rate and Open Interest suggests that buyers are still dominant, although their aggressiveness has diminished.

 Read Arbitrum (ARB) Price Prediction 2024-23

Arbitrum’s TVL shoots to highest point

An examination of the Arbitrum Total Value Locked (TVL) on DefiLlama showed a consistent uptrend over the past few months. The chart showed that the upward trajectory started around October and has persisted.

As of this writing, the TVL was around $2.6 billion, marking the highest point in the network’s history. The previous peak in TVL was around $2.5 billion.