Cryptocurrencies continue to underperform despite highly-anticipated catalysts such as Donald Trump signing the crypto strategic reserve.

Arbitrum has struggled with bearish tendencies recently, losing nearly 60% from $0.8 to $0.34 in the past three months.

The significant dip has deteriorated ARB’s profit margins, putting all holders at a loss.

Meanwhile, the downtrends have dented Arbitrum’s profitability.

IntoTheBlock data shows that 100% of ARB investors are experiencing losses, with none at break even or profitable.

That indicates prolonged struggles for the altcoin. The number of holders at profit has slumped from 14% in December to currently zero.

That means ARB’s current market price is lower than the purchase value.

The MVRV short/long difference highlights the faded profitability within the Arbitrum ecosystem.

The indicator shows ARB long-term holder profitability plunged to three-month lows of -40.

That means these investors are 40% down from the purchase price.

A negative long/short difference often triggers substantial selling pressure as long-term holders sell to reduce losses.

On-chain signals display bear dominance. The net network growth has dropped 0.35%, signaling bearish sentiment among holders.

That means fewer addresses are interacting with Arbitrum as bearish sentiments grow.

The plunged “In the Money” highlights the declining profit margins within the ARB network.

Concentration, which tracks daily position adjustments by whales and significant investors, dipped 0.03%, confirming holder disinterest in increasing their positions.

Moreover, high net worth and institutional players have reduced their activity.

Transactions worth over $100K have declined by 1.61%.

The alt trades at $0.3565 as it displays overwhelming selling momentum.

ARB dropped approximately 9% within the past day, extending its weekly and monthly losses to 20% and 18.95%, respectively.

The prevailing surge in daily trading volume likely depicts increased activities from investors and traders looking to reduce losses amid prolonged price declines.

Losing the support barrier at $0.35 could cause significant declines or prolonged consolidations.

Technical indicators confirm anticipated ARB declines in the near term.

Moving Average Convergence Divergence’s bearish crossover suggests seller dominance.

Also, the Chaikin Money Flow dipped from +30 on March 3 to today’s -0.8.

That reflects reduced cash entering ARB’s marketplace as investors lose trust in the asset’s performance.

Despite the prevailing outlook, history suggests a potential comeback from Arbitrum.

Assets with 0% of investor in profit often create a lucrative opportunity for buyers interested in re-entering.

Massive dips in profitability confirm a potential local bottom for buyers to join and catalyze stable recoveries.

Thus, Arbitrum’s current downtrend could attract dip-buying actions, heralding price revivals.

ARB bulls should reclaim $0.44 to shift the altcoin’s trajectory to bullish.

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