Arbitrum [ARB] has been showing upward momentum following a breakout from a descending wedge pattern. This optimistic pattern indicates that ARB might be on its way to higher price levels.
Currently, ARB is trading at $0.5174, reflecting a 1.55% increase in the last 24 hours and a 3.10% uptick over the past week. The breakout occurred around the $0.51 mark, with the next significant resistance level at $0.6350, which could potentially lead to a 25.25% gain.
Source: TradingView
Technical Signals Point Toward an Upward Trajectory
At the moment, the Relative Strength Index (RSI) stands at approximately 59.83, showing a bullish divergence in price movements. This rising RSI indicates a growing interest in buying, supporting the possibility of further price increases.
If the RSI continues to rise, traders might witness a stronger buying trend.
Aside from the RSI, the Bollinger Bands are contracting, suggesting decreased volatility. With the price close to the middle band at $0.5298, the market is currently uncertain.
A breakout above $0.6091 could confirm a bullish turnaround, while a drop below $0.4505 could lead to further downward movement.
Source: TradingView
The MACD indicator is indicating a slight bullish crossover, with the MACD line crossing above the signal line. This indicates the start of positive momentum, although the MACD is still below the zero line, indicating an overall bearish market trend.
A move above the zero line would confirm a stronger bullish trend.
The Aroon indicator also hints at a potential bullish trend in progress, with the Aroon Up standing at 64.29%. To validate this trend, the price needs to surpass $0.5298.
If ARB fails to maintain its position above this level, there might be a continuation of the recent bearish trend, particularly if the price drops below the $0.50 level.
Increased Arbitrum Transactions and Market Activity
Over the last 24 hours, ARB has seen 190 large transactions, matching the high seen on 6th September. This surge in significant transactions indicates a revived interest and activity in the Arbitrum market.
In contrast, the low of 66 transactions was observed on 3rd September, indicating a recent rise in market engagement.
Source: IntoTheBlock
Furthermore, data from DeFiLlama reveals that Arbitrum’s Total Value Locked (TVL) stands at $2.514 billion, with 395,133 active addresses and 22,995 new addresses added in the past 24 hours.