Market
Layer 2 Arbitrum (ARB) Sees Demand Plummet to New Lows
ARB, the native token of the leading Layer 2 (L2) network Arbitrum, has dropped significantly in the past few weeks. On July 5, the altcoin traded at an all-time low of $0.57.
Although ARB’s price has since climbed 22%, the decrease in user demand for the L2 network threatens to erase these gains.
Arbitrum Witnesses User Exodus
On-chain data has shown a decline in user demand for Arbitrum since June 21. Since that day, the daily count of active addresses involved in at least one transaction on the L2 has plummeted by over 46%.
Due to the fall in the count of unique addresses active on the network, the number of transactions completed daily on Arbitrum has also dwindled.
After climbing to a year-to-date peak of 3.5 million, the daily transactions count on the L2 initiated a downtrend. It has since decreased by 34%.
Read More: How to Buy Arbitrum (ARB) and Everything You Need to Know
With fewer transactions completed on the L2, Arbitrum’s network fees and revenue derived from them are at multi-month lows. Arbitrum’s total network fees spiked to an all-time high of $3.4 million on June 20 because the L2 was used as the main coordination chain for the LayerZero airdrop.
However, following the conclusion of the controversial airdrop, users flocked out of Arbitrum, pushing its network fees down by 98% the following day.
The network’s revenue witnessed a 99% decline during the 24-hour period.
Lead Analyst at Santiment, Brian Quinliven, added to the bearish sentiment, insisting that whales could be holding out for bullish momentum before shifting funds around:
“The lack of whale activity looks quite similar to what we have been seeing for Optimism. A gradual decline in big moves isn’t necessarily a bad thing. It simply means they may be waiting for a bit more volatility to really capitalize on before making their moves.” Quinlivan stated.
Quinlivan also added that wallets holding at least one million ARB hold a very high level of Arbitrum’s supply despite the large price decline in 2024.
“These key stakeholders clearly feel comfortable hanging on to their coins for the long haul despite its market value dropping a bit over -70% in 6 months.” Quinlivan added.
ARB Price Prediction: Ready for a Rebound?
While ARB’s price has trended downward in the past week, its Chaikin Money Flow (CMF) is in an uptrend. This indicator measures how money flows into and out of an asset.
When an asset’s price falls while its CMF rises, a bullish divergence is formed. This divergence signals a potential price reversal. It suggests that the selling pressure may be weakening, and the asset might be poised for a price rebound.
If this happens, ARB’s price could increase to $0.72.
Read More: Arbitrum (ARB) Price Prediction 2024/2025/2035
However, if the current decline continues, the token’s price will plummet to $0.66.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
XRP price started a fresh decline below the $2.080 zone. The price is now recovering some losses and might face hurdles near the $2.150 level.
- XRP price started a fresh decline after it failed to clear the $2.20 resistance zone.
- The price is now trading below $2.120 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $2.10 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might extend losses if it fails to clear the $2.150 resistance zone.
XRP Price Faces Resistance
XRP price failed to continue higher above the $2.20 resistance zone and reacted to the downside, like Bitcoin and Ethereum. The price declined below the $2.150 and $2.10 levels.
The pair even declined below the $2.050 zone. A low was formed at $2.023 and the price is now attempting a recovery wave. There was a move above the $2.050 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $2.215 swing high to the $2.023 low.
The price is now trading below $2.120 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.10 level. There is also a connecting bearish trend line forming with resistance at $2.10 on the hourly chart of the XRP/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $2.215 swing high to the $2.023 low.
The first major resistance is near the $2.150 level. The next resistance is $2.1680. A clear move above the $2.1680 resistance might send the price toward the $2.20 resistance. Any more gains might send the price toward the $2.220 resistance or even $2.250 in the near term. The next major hurdle for the bulls might be $2.2880.
Another Decline?
If XRP fails to clear the $2.120 resistance zone, it could start another decline. Initial support on the downside is near the $2.050 level. The next major support is near the $2.020 level.
If there is a downside break and a close below the $2.020 level, the price might continue to decline toward the $2.00 support. The next major support sits near the $1.880 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $2.050 and $2.020.
Major Resistance Levels – $2.120 and $2.150.
Brian Quintenz, the incoming Chair of the US CFTC (Commodity Futures Trading Commission), has begun meeting with Capitol Hill lawmakers before his nomination hearing.
On Monday, Quintenz met with Senator Chuck Grassley (R-IA) to discuss key regulatory issues, including the CFTC’s role in overseeing crypto spot markets.
CFTC Targets Crypto Spot Market After Derivatives
Brian Quintenz met with Republican Senator from Iowa Chuck Grassley to discuss another element in the CFTC’s crypto market structure regulation agenda. This time, the focus is on crypto spot markets.
“It was wonderful to meet with you Chuck Grassley and discuss your leadership on whistleblower issues as well as the future of the agency,” Quintenz stated.
Grassley also commented on their discussion. He highlighted the CFTC Whistleblower Protection Program for spot crypto markets as part of the agenda. Notably, Grassley is a member of the Senate AG Committee, the legislative body overseeing the CFTC.
Eleanor Terrett, host of the Crypto America podcast, indicated that the Senate AG Committee will have a significant role in part of the CFTC’s crypto regulation agenda. Specifically, it would have an outsized say in whether the CFTC could gain expanded jurisdiction over crypto spot markets.
The meeting comes as the CFTC moves closer to expanding its role in crypto regulation. US President Donald Trump tapped Quintenz, a former executive at venture capital firm Andreessen Horowitz (a16z), to lead the agency.
His appointment is part of Trump’s broader plans to reshape crypto oversight. This could potentially give the CFTC greater authority over digital asset markets.
Meanwhile, regulatory developments surrounding crypto have accelerated in recent weeks. The CFTC eased regulatory hurdles for the crypto derivatives market only days ago. The move will enhance market efficiency and attract institutional investors.
Beyond derivatives and spot markets, the CFTC is also exploring other areas of crypto oversight. The agency recently announced plans to host a roundtable discussion on prediction market regulation. It aims to address the regulation of decentralized prediction platforms.
Stablecoins are also on the agency’s radar. The CFTC also revealed a forum to discuss stablecoin regulation and potential risks associated with their widespread adoption.
Additionally, the Federal Deposit Insurance Corporation (FDIC) and the CFTC revoked previous crypto-related guidelines, signaling a shift in regulatory strategy.
Crypto markets can also not rule out the possibility of further collaboration between key agencies in the broader industry. Reports indicate that the US SEC (Securities and Exchange Commission) and the CFTC have discussed reviving a joint advisory committee to coordinate on crypto regulation.
If revived, the committee could serve as a bridge between the agencies. This would address concerns over jurisdictional overlap and streamlining oversight efforts.
As Quintenz prepares for his nomination hearing, his meetings with lawmakers suggest that crypto regulation will be a top priority for the CFTC moving forward.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Solana started a fresh decline below the $132 support zone. SOL price is now consolidating and might struggle to recover above the $126 resistance.
- SOL price started a recovery wave from the $122 support zone against the US Dollar.
- The price is now trading below $130 and the 100-hourly simple moving average.
- There is a key rising channel forming with support at $124 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if the bulls clear the $126 zone.
Solana Price Faces Resistance
Solana price started a fresh decline below the $135 and $132 levels, like Bitcoin and Ethereum. SOL even declined below the $125 support level before the bulls appeared.
A low was formed at $122.64 and the price recently started a consolidation phase. There was a minor increase above the $125 level. The price tested the 23.6% Fib retracement level of the downward move from the $140 swing high to the $122 low.
Solana is now trading below $126 and the 100-hourly simple moving average. There is also a key rising channel forming with support at $124 on the hourly chart of the SOL/USD pair.
On the upside, the price is facing resistance near the $126 level. The next major resistance is near the $128 level. The main resistance could be $132 or the 50% Fib retracement level of the downward move from the $140 swing high to the $122 low.
A successful close above the $132 resistance zone could set the pace for another steady increase. The next key resistance is $136. Any more gains might send the price toward the $142 level.
Another Decline in SOL?
If SOL fails to rise above the $128 resistance, it could start another decline. Initial support on the downside is near the $124 zone. The first major support is near the $122 level.
A break below the $122 level might send the price toward the $115 zone. If there is a close below the $115 support, the price could decline toward the $102 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $124 and $122.
Major Resistance Levels – $128 and $132.
XRP Bulls Fight Back—Is a Major Move Coming?
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$2,300 Emerges As The Most Crucial Resistance
Solana (SOL) Holds Steady After Decline—Breakout or More Downside?
Ethereum Price Faces a Tough Test—Can It Clear the Hurdle?
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