Arbitrum’s four-month-long downtrend might come to an end as the ecosystem’s “Everywhere” initiative takes effect. Technical indicators confirm a trend reversal.
Arbitrum (ARB) has been on a downtrend since August, crashing from $0.6 to $0.18. During the fall, the token tried to find support close to $0.4 and $0.29, but the bear pressure was immense, and the support level could not hold up.
ARB price crash despite “Everywhere” initiative
This crash happened despite Arbitrum’s ongoing “Everywhere” initiative, which kicked off in May. Referring to the initiative, the website reads, “The actual goal is to build sustainable, open infrastructure that can stand the test of time. Think of it less like upgrading a part of your car to make it more fuel-efficient and more like a collective effort to redesign the entire transportation system into one that’s more sustainable, effective, and accessible to everyone. A global system built to scale Arbitrum everywhere.”
As such, the ecosystem focuses on improving the three main pillars: performance, unification, and decentralization. Despite Arbitrum’s effort to better the ecosystem on all fronts, ARB’s price has been crashing. The token has tumbled from $0.6 to $0.18 during the past 4 months. Although the initiative failed to stop the crash immediately, it is taking effect now.
RSI hints at a bullish reversal
When looking at ARB’s fall, it worsened when the death cross happened. It was a vertical drop from $0.43 to $0.1. Following this free fall, ARB extended its downtrend, trying to find its floor price. But now, the token has found its base price level at $0.19, thanks to the impact of the “Everywhere” initiative, which is taking effect after 6 months.
The Relative Strength Index (RSI) confirms that ARB’s downtrend has come to an end. The RSI usually moves in unison with prices, making higher highs or lower lows in tandem. But currently, the RSI is making higher lows while the price is making lower lows. This shows that the bearish trend is waning and the reversal is about to happen.
Once ARB recovers and changes its direction, the first resistance level the token will test is the 50-day moving average at $0.23.
