Arbitrum [ARB] has been gaining substantial traction within the cryptocurrency market, driven by its remarkable price performance and increasing trading volume.
Currently, ARB is being traded at $0.6947, showing an 11.29% surge within the last 24 hours. The trading volume has also surged by 200% to $1.10 billion, indicating a strong interest from investors.
Nevertheless, the main question is – can ARB retain its bullish trend and exceed the $1.30 hurdle, potentially aiming for $2.42?
Potential uptrend suggested by rounded bottom formation
On the weekly chart, a rounded bottom pattern has emerged, hinting at a potential bullish reversal.
This pattern hints that ARB might keep moving upwards if it can surpass the immediate resistance at $1.30.
A decisive breach above this level could attract more buyers and push ARB towards its ambitious target of $2.42. Conversely, failing to break through $1.30 might indicate a consolidation phase.
Strengthening momentum for Arbitrum
The momentum indicators are reinforcing the positive outlook for ARB.
Currently, the RSI stands at 57.37 on the daily chart, indicating bullish momentum with potential for further upward movement before hitting overbought levels.
Also, the MACD exhibited a bullish crossover, underscoring growing market optimism and suggesting that buyers are gaining control.
But any signs of weakness could lead to a brief pullback.
Positive on-chain signals supporting bullish sentiment
The on-chain signals strongly support the bullish scenario for ARB.
The “in the money” metric, up 1.81%, points to increasing profitability for holders, while the surge of 8.68% in large transactions indicates heightened activity from institutional investors or whales.
However, the 0.71% drop in net network growth indicates some hesitation in attracting new participants, which might pose a challenge to sustained growth.
Moreover, the 0.33% bullish concentration metric suggests ongoing accumulation by long-term holders, portraying stability.
Will traders drive ARB to higher levels?
Sentiment data reinforces a cautiously optimistic stance. The Long/Short Ratio indicates that 51.43% of traders have taken long positions at the moment, signaling a slightly bullish sentiment.
This signals a growing confidence in ARB’s potential to overcome the $1.30 resistance hurdle.
Overall, ARB appears well-positioned for further growth, supported by a rounded bottom pattern, bullish technical indicators, and generally positive on-chain metrics.
Nonetheless, surpassing the critical $1.30 level is imperative to confirm its upward trend. If ARB manages to breach this level, achieving the $2.42 target could be within reach soon.