Arbitrum [ARB] has been gaining notable traction within the cryptocurrency market, driven by its strong price performance and increasing trading volume.
Currently, ARB is being traded at $0.6947, showing an uptick of 11.29% in the last 24 hours. Its trading volume has surged by 200% to reach $1.10 billion, indicating a heightened interest from traders.
Nevertheless, the key question persists – can ARB sustain its bullish trend and surpass the $1.30 mark, setting the stage for a potential climb towards $2.42?
Signs of an Impending Rally with a Rounded Bottom Formation
Upon examination of the weekly chart, an optimistic outlook is portrayed through the presence of a rounded bottom pattern, a strong signal of an upcoming bullish reversal.
This pattern hints at the possibility of ARB continuing its upward movement, contingent upon successfully crossing the immediate hurdle at $1.30.
A breakout above this level is likely to attract more buyers, driving ARB towards the ambitious target of $2.42. On the contrary, a failure to breach $1.30 might indicate a period of consolidation.
Strength in Momentum for Arbitrum
Indicators of momentum reinforce the positive sentiment surrounding ARB.
As per the current data, the RSI on the daily chart stands at 57.37, indicating a bullish momentum that still offers room for further upward movement before entering the overbought zone.
Similarly, the MACD exhibits a bullish crossover, with the MACD line positioned above the signal line, signaling a growing optimism in the market and indicating an increasing control by buyers.
Nevertheless, any indications of weakening could lead to a short-term retracement.
Bullish On-Chain Signals for ARB
On-chain signals predominantly strengthen the bullish narrative for ARB.
The “in the money” metric, rising by 1.81%, signifies enhanced profitability for holders, while the 8.68% surge in large transactions suggests heightened activity from institutional investors or whales.
Conversely, the 0.71% decrease in net network growth indicates some hesitance in attracting new users, which might pose a challenge to sustained growth.
Additionally, the 0.33% bullish concentration metric implies continued accumulation by long-term holders, indicating stability.
Will Traders Propel ARB to Higher Levels?
Sentiment data underlines a cautious optimism, with the Long/Short Ratio showing 51.43% of traders holding long positions currently, signaling a slightly bullish sentiment.
This suggests a growing belief in ARB’s potential to overcome the $1.30 resistance.
Overall, ARB seems well-positioned for future growth, supported by the rounded bottom pattern, positive technical indicators, and favorable on-chain metrics.
However, the breakthrough of the $1.30 barrier is crucial to validate its upward trajectory. Successfully conquering this level could pave the way for ARB to reach the $2.42 target in the foreseeable future.