Arbitrum (ARB) Buy Signal: Why Timing Might Be Off
Arbitrum (ARB) Buy Signal: Why Timing Might Be Off
While Arbitrum's MVRV ratio and Weighted Sentiment tell traders that this might be a good time to buy, growing bearish activity in its market hint at a decline in the short term.
Arbitrum Traders Wonder If the Time Is Right
At press time, ARB’s Market Value to Realized Value (MVRV) ratio, assessed using different moving averages (30-day and 365-day), returned negative values. The token’s MVRV ratios on 30-day and 365-day moving averages were -3.51% and -31.72%, respectively.
- An asset’s MVRV ratio tracks the ratio between the asset’s current market price and the average price of its coin or token circulation.
- When its value is positive, the asset is overvalued. On the other hand, a negative MVRV ratio suggests that the asset is undervalued, making it a good time to buy.
ARB Price Prediction: Short-term Losses Are Ahead
While metrics hinted at a rally, indicators such as the RSI and CMF suggested a possible downtrend in the short term. Bearish pressure might push ARB below critical support levels and lead to price declines.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.