- An investor recently lost approximately $130K in two transactions by buying and selling the cryptocurrency $ARB.
- Buying and selling decisions were made impulsively without studying the market, resulting in losses on both occasions.
- The investor’s double loss is an example of how important it is to carefully analyze and assess the market before making trading decisions.
The recent losses incurred by this investor serve as a cautionary tale for other traders. His impulsive and unplanned buying and selling resulted in double losses totaling approximately $130,000. Recently, he purchased 1.35 million tokens at $1.33 before impulsively selling all of them just two days later at a lower price of $1.28.
Investor’s Buy/Sell Signal, Source: Lookonchain
Then, on April 15th, he made the same mistake when he bought 729K tokens at $1.64 and then sold them shortly after at a lower price of $1.55. His costly losses demonstrate how important it is to properly analyze and assess the current market before making trading decisions.
Arbitrum price analysis
The latest Arbitrum price analysis shows a bearish market sentiment as the bears have taken control. The token has been trading downward for the past two days despite having a tremendous uptrend in the past 7 days as it traded from a low of $1.21 to a high of $1.80 which has seen a significant increase of 26 percent.
The current price stands at $1.52 which is a decrease of over 7% over the past 24 hours. The present resistance level is located at $1.65 which is acting as a barrier for the token whereby if the buying pressure increases then the token might break through and continue its bullish run.
ARB/USD daily chart, Source: CoinMarket Cap
However, if this resistance is not broken, then it is likely that the price of the token will experience a pullback as the bears take over toward the support level of $1.47. A break below this point would be a sign of bearish market sentiment. Therefore, investors should exercise caution when investing and always analyze the market before making trading decisions.
ARB’s trading volume is currently at $1.51 billion with has seen an increase of 13.20 percent over the past 24 hours while the overall market capitalization stands at $2 billion which places ARB in the top 50 cryptocurrencies by market value. The total supply for ARB is currently at 10 billion while the circulating supply of ARB is 1,275,000,000 ARB.
The hourly chart for Arbitrum shows that the bears are currently holding the upper hand as they have declined toward the support level of $1.47. The decline in price is accompanied by the increase in trading volume which shows that the bears are holding control.
Technical indicators in this timeframe show a negative trend. The Moving Average Convergence Divergence (MACD) indicator shows a bearish sentiment with the MACD line below the signal line and the histogram is in the bearish region. The MACD indicator value is currently at -0.0115 showing that the bears are in control.
ARB/USD 4-hour chart, Source: TradingView
Similarly, the relative strength index (RSI) is also in the bearish territory at 42.02 which shows that investors should continue to exercise caution when investing in Arbitrum as there may be further downside ahead. The moving average (MA) indicator is also in the bearish mode as the 10 MA line has crossed below the 20 MA line. Red candlesticks depict a bearish trend in the market.
In conclusion, the recent losses incurred by an investor serve as a cautionary tale for other crypto enthusiasts. It is important to properly analyze and assess the current market before making trading decisions, no matter how tempting short-term gains may be. The overall sentiment of the market still points toward a bearish stance and investors should exercise caution when entering into positions with this cryptocurrency.
Disclaimer: Cryptocurrency price is highly speculative and volatile, and should not be considered financial advice. Past and current performance is not indicative of future results. Always do your own research and consult with a financial advisor before making investment decisions.