Arbitrum [ARB] has been on an upward trajectory following its breakout from a descending wedge pattern. This bullish pattern signals a potential rise in ARB’s price levels.
As of the latest update, ARB is trading at $0.5174, showing a 1.55% increase in the past 24 hours and a 3.10% uptick over the previous week. The breakout occurred around the $0.51 level, with the next significant resistance level at $0.6350, indicating a possible 25.25% gain.
Source: TradingView
Technical Indicators Point Towards an Upward Trend
Currently, the Relative Strength Index (RSI) sits at approximately 59.83, suggesting a bullish divergence in price action. The rising RSI reflects growing buying interest, strengthening the likelihood of further price increases.
If the RSI continues its upward trajectory, traders may witness a surge in buying momentum.
Alongside the RSI, the Bollinger Bands are contracting, indicating reduced volatility. With the price close to the middle band at $0.5298, the market appears indecisive.
A breakout above $0.6091 could validate a bullish reversal, while a drop below $0.4505 might result in further declines.
Source: TradingView
The MACD indicator shows a weak bullish crossover, with the MACD line crossing above the signal line. This signals the initiation of positive momentum, but with the MACD still below the zero line, the overall market trend remains bearish.
A move above the zero line would confirm a stronger bullish trend.
The Aroon indicator indicates a potential bullish trend forming, with the Aroon Up at 64.29%. To confirm this trend, the price must break above $0.5298.
If ARB fails to maintain levels above this mark, the market could continue the recent bearish trend, especially if the price drops below $0.50.
Surge in Arbitrum Transactions and Market Activity
Over the last 24 hours, ARB has seen 190 significant transactions, matching the high seen on 6th September. This uptick in large transactions suggests renewed interest and activity in the Arbitrum market.
Conversely, the 7-day low registered 66 transactions on 3rd September, indicating a recent increase in market activity.
Source: IntoTheBlock
Moreover, DeFiLlama data reveals that Arbitrum’s Total Value Locked (TVL) stands at $2.514 billion, with 395,133 active addresses and 22,995 new addresses created in the past 24 hours.