Arbitrum [ARB] at risk of forming a lifetime low – Here’s why

A rise in active addresses correlated with Arbitrum’s current selling pressure.
Whales have contributed to the market drop, and ARB risks forming a lifetime low.

In the past month, Arbitrum [ARB] has declined by 31.67%, and the drop doesn’t appear to be slowing, as it has fallen another 4.44% in the past 24 hours.

Analysis by AMBCrypto showed that market sentiment among whales and other participants have been predominantly bearish, with selling activity possibly intensifying soon.

Surge in selling activity

Data from Artemis showed an overall increase in the number of active addresses on Arbitrum since the 1st of February.

Until the time of writing, active addresses, which measures interactions occurring on the chain, have surged from approximately 224,000 to 262,000.

Source: Artemis

Typically, a rise in active addresses could be bullish or bearish depending on other market conditions. However, an analysis of the Average Time Held of Coins Transacted shows a decline.

This metric calculates how long a coin is held before being transacted. Press time data showed that the average holding time was two weeks, a significant decline of 79.96% compared to the past 30 days.

This suggests that market participants have little incentive to hold ARB.

A total of 12.41 million ARB has been transacted so far, and this could increase as holders reduce their exposure.