Arbitrum (ARB) holds $1.1 level despite FUD around Rodeo Finance hack
Date: 2023-07-14 Author: Karina Ziganova Categories: BLOCKCHAIN
Arbitrum is trading above the $1.10 support level despite an incident this week with the Rodeo Finance platform.
Rodeo Finance's decentralized finance (DeFi) protocol, built on the Arbitrum blockchain, suffered a $1.5 million exploit despite this, the price of ARB was able to hold at $1.10.
The Arbitrum network attracts more and more users
Despite the negative news background around the recent Rodeo Finance exploit, Arbitrum has attracted a lot of new users this week. According to the analytical platform Santiment, in the period from July 5 to July 13, the number of daily new addresses increased by 40% - from 2,585 to 3,631.
Such an impressive jump indicates that the FUD around the incident did not affect the ARB, and the underlying asset will be in new demand.
Market sentiment around ARB remains neutral
The Weighted Sentiment metric, which measures the ratio of positive opinions about an asset on social media to negative ones, is currently in the neutral zone at -0.26.
Just a week ago, this figure was -0.32. This means that over the past few days, users have expressed more positive opinions about Arbitrum.
The increase in the number of new ARB addresses and the change in market sentiment to positive mean that the price of the asset is likely to hold at $1.1.
The price of Arbitrum may rise to $1.20
The readings of key on-chain metrics show bullish signals indicating a possible ARB rally to $1.20. The positive outlook is also confirmed by the MVRV ratio, which reflects the financial position of the current holders of the asset. In the chart below, you can see that the profit of most investors who bought Arbitrum in the last 30 days is 2%.
Given the positive sentiment in the market, most of them will wait for profits to grow to 5% before they start selling coins. However, if the ARB manages to resist, the next significant resistance zone will be the $1.20 level.
