- ARB prices fell by more than 3%.
- TVL has continued to rise despite the recent price drop.
In recent days, Arbitrum [ARB] has experienced fluctuating price developments. Nevertheless, despite these price fluctuations, the Total Value Locked (TVL) within its network has reached an all-time high.
The arbitration recovery comes to a standstill
Between January 12 and 14, the daily timeframe chart for Arbitrum showed consecutive declines. The largest decline occurred on January 14, reaching approximately 6.7%.
This decline was the second largest of the year to date. Following this downturn, Arbitrum made recovery attempts, showing consecutive uptrends on January 15 and 16, resulting in a combined uptrend of almost 6%.
Source: trading view
However, as of this writing, the cryptocurrency has resumed its decline, down more than 3%, with a current trading price of around $2.
Arbitrum’s price was above the long and short moving averages, shown by the blue and yellow lines respectively. The yellow line served as a support level around $1.4.
Additionally, the Relative Strength Index (RSI) was above 60 at the time of writing, indicating that the ARB was currently in a bull trend. It is worth noting that this price development deviated from the general market trend.
ARB traders reduce the excitement
The Arbitrum Funding Rate has seen a recent decline in trader enthusiasm in recent weeks. Analysis of Mint glass data showed a decline in financing rates from about 0.06% to about 0.009%. At the time of writing this was approximately 0.01%.
Furthermore, a survey by the Open Interest showed a reduction in activity. On January 12, Open Interest was over $340 million, but has now fallen to approximately $313 million.
The observed position of the Funding Rate and Open Interest suggests that buyers are still dominant, although their aggressiveness has decreased.
Read Arbitrum (ARB) price forecast 2024-23
Arbitrum’s TVL shoots to the highest point
An investigation of the Arbitrum Total Value Locked (TVL) on DefiLlama has shown a consistent upward trend in recent months. The chart shows that the upward trajectory started around October and has continued.
At the time of writing, TVL was approximately $2.6 billion, marking the highest point in the network’s history. The previous peak in TVL was around $2.5 billion.