• ARB declined by 19.42% over the past month.
• Arbitrum’s holder in profit declined to 7%, hitting a historical low.

Over the past three weeks, Arbitrum [ARB] has experienced a sustained decline, from a high of $0.95 to $0.58, eventually reaching $0.63 at press time. This marked a 3.47% decline on daily charts.

The recent market conditions have left the crypto market community worried about a potential crash as profitability for holders declines.

Holder profitability hits historic low

According to IntoTheBlock, Arbitrum has seen the largest drop in profitability for investors, with most holders operating at a loss.

At this price level, only 7% of ARB holders are in profit. This implies that 89% of holders are at a loss, while only 4% are at the money.

During this period, long-term holders have continued to exit the market. As such, currently, only 40% of ARB holders appear to have held the altcoin for more than a year.

When such a huge number of holders are at a loss, there are two possible scenarios. The first is a ‘final flush,’ where another drop could occur before a reversal emerges.

The other scenario is a potential bottom signal. Here, large holders stop selling since weak hands have excited the market, resulting in a trend reversal.

What’s ahead for ARB?

According to AMBCrypto’s analysis, Arbitrum was experiencing strong downward pressure at press time, as bears dominated the market.