While many cryptocurrencies experienced downward pressure from bears last week, Arbitrum [ARB] displayed a slight bullish trend. However, there are indications that the token is poised to break out of a bullish pattern, potentially leading to a significant price surge in the upcoming days or weeks.
Is Arbitrum Gearing Up for a Bullish Run?
Recent data from CoinMarketCap shows that ARB bulls have gained momentum, pushing the token’s price slightly higher in the last 24 hours. Currently, ARB is trading at $0.5019, boasting a market capitalization exceeding $1.75 billion.
Despite zero profit for ARB investors as reported by IntoTheBlock, there is optimism that this scenario might shift in the near future. Long-term holders, individuals who have held the token for over a year, have increased slightly, indicating their confidence in a potential price rally.
Encouragingly, Arbitrum’s price movement is confined within a bullish pattern. Notably, a renowned crypto analyst, World Of Charts, identified a bullish falling wedge pattern in a recent tweet. The token is on the cusp of breaking out, hinting at a projected 25% price increase. Additionally, a bullish divergence spotted on one of its technical indicators’ charts further supports the likelihood of a bullish breakout.
Charting the Course for ARB’s Future
Examining on-chain data is crucial in gauging the potential for a bullish breakout. According to our analysis of Santiment’s data, Arbitrum’s MVRV ratio has shown improvement. Furthermore, network growth for the token surged notably on September 6th, indicating a rise in new addresses being created.
However, a bearish signal emerged from Coinglass’ data, revealing a decline in Arbitrum’s long/short ratio. This decline suggests a greater number of short positions compared to long positions in the market, signaling bearish sentiment.
Delving into the token’s daily chart provided additional insights into the possibility of a bullish breakout.
A majority of market indicators for Arbitrum exhibited bullish tendencies. Notably, the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both showcased upward trends, indicating a high probability of a price surge and subsequent bullish breakout.