Altcoin Sherpa Bearish on Arbitrum (CRYPTO: ARB), Predicts Price Drop to $1.20 or Lower
Altcoin Sherpa, a well-known pseudonymous cryptocurrency trader, has made headlines with his bearish sentiments towards Arbitrum (CRYPTO: ARB). In a recent tweet, Sherpa expressed concern over the “nasty price moves” of the Layer-2 Ethereum (CRYPTO: ETH) scaling solution, predicting that the price could drop to $1.20 or even lower.
The analyst pointed out that the loss of the 200-day exponential moving average (EMA) for Arbitrum is a negative sign, suggesting that the coin may be on the verge of retracing its entire move. The 200-day EMA is a key technical indicator used by traders to gauge the long-term trend of an asset, and a break below this level often indicates a bearish trend.
Despite recent support from BitGo, a digital asset trust and security company, and the upcoming Stylus upgrade on Arbitrum, which would allow developers to write smart contracts in Rust and other popular programming languages, data from L2BEAT shows that Arbitrum has been losing market share to its competitors.
While the future performance of ARB remains uncertain, Altcoin Sherpa’s cautionary analysis serves as a reminder for traders and investors to exercise caution. The upcoming Future of Digital Assets event by Benzinga on Nov. 19 is expected to delve into the institutional potential of Ethereum, shedding light on the evolving landscape of digital assets.
As the cryptocurrency market continues to evolve, it is crucial for investors to stay informed and consider all perspectives before making investment decisions. Stay tuned for further updates on Arbitrum and other cryptocurrencies as the market dynamics unfold.
