April 11, 2024 4:50 p.m. | 2 minute read |
altcoin sherpaPopular pseudonymous cryptocurrency traders are Arbitrum (CRYPTO: ARB), we expect the price to fall below $1.20.
what happened: sherpa expressed Concerns about “troublesome price fluctuations” in Layer 2 Ethereum (CRYPTO: ETH) Scaling Solutions. He hinted that the cryptocurrency could head towards a value below $1.20, saying he would like to see the coin “stable and cool” before forming a bottom.
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The analyst also noted that the loss in the coin's 200-day exponential moving average (EMA) is a negative sign, suggesting the coin “may nearly revert its entire move.” .
The 200-day EMA is an important technical indicator used by traders to determine the long-term trend of an asset, and losses at this level often indicate a bearish trend.
Please also read: Robinhood partners with Arbitrum Blockchain to simplify crypto swaps
Why it's important: bitgo, a digital asset trust and security company, recently announced support for Arbitrum, which allows customers to store coins in hot, custodial, and cold wallets. Arbitrum is a layer 2 technology designed to improve service upgrades by enhancing users' exploration and development capabilities on Ethereum.
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according to According to a tweet by CryptoRank in early April, Arbitrum ranks second in total value locked per unique address, calculated by dividing total value locked (TVL) by the number of unique addresses. Blockchain ($195).
Announced the adoption of Arbitrum, which allows customers to store coins in hot wallets, custodial wallets, and cold wallets. Arbitrum is a layer 2 technology created to improve service upgrades by enhancing users' ability to explore and develop on Ethereum.
Of note is a tweet from CryptoRank in early April. indicates Arbitrum is the second best blockchain by total value locked per unique address ($195). This ratio is calculated by dividing the total value locked (TVL) by the number of unique addresses.
An upcoming upgrade called Stylus on Arbitrum will allow developers to write smart contracts in Rust and other popular programming languages, pending approval from the Arbitrum DAO. However, while Arbitrum accounted for 44% of all cryptocurrencies deposited on Ethereum's four dozen Layer 2 blockchains, it is losing market share to emerging competitors, according to L2BEAT data.
Although ARB's future performance remains uncertain, Altcoin Sherpa's analysis provides a cautious perspective for traders and investors to consider.
what's next: The impact of Ethereum as an institutional asset class will be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on November 19th.
Read next: 'This is crazy' Ethereum defender is incredulous about Dogwifat's performance outperforming blockchain's 'actual verifiable cash flow'
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