In the recent month, Arbitrum [ARB] has demonstrated a consistent uptrend, registering a significant 78.80% increase. This positive momentum is also reflected in shorter timeframes, with weekly and daily gains of 15.20% and 8.08%, respectively.
As previously mentioned by CryptoCrypto, this upward movement is likely to continue as market participants’ activities reinforce the bullish sentiment.
Upward Trend Driven by Rise in Netflow Accumulation Interest
Current data reveals that the altcoin has witnessed the highest chain netflow in the last 24 hours, outpacing Base, Solana [SOL], and Ethereum [ETH] with net inflows totaling $42.6 million.
Chain netflow indicates the net difference between the inflow and outflow of an asset. It serves as a metric to monitor fund movements, user engagement, trading patterns, and liquidity trends. Positive netflow, as observed with ARB, signals accumulation and hints at potential price appreciation.
Further insights from CryptoCrypto suggest a high likelihood for ARB to maintain its bullish trend.
Decrease in Selling Pressure as Momentum Builds
Following four consecutive days of significant positive exchange netflow amounting to $17.04 million, indicating selling pressure, a shift has occurred.
Recent data shows negative netflow over the past 48 hours, suggesting that investors are now holding onto their ARB. Approximately $1.66 million in negative netflow transactions have contributed to ARB’s 8% price increase at the time of writing.
Moreover, there has been a noticeable reduction in transactions from large holders, indicating a decrease in selling pressure from whales.
According to IntoTheBlock data, there has been a decline of 500 large-holder transactions within the same 48-hour timeframe, dropping from 706 to 206.
If this trend persists, ARB could uphold its positive momentum.
Critical Resistance Levels Ahead for ARB, Targeting $2.4
The digital asset is projected to face substantial resistance upon approaching a significant supply zone identified by the In/Out of the Money Around Price (IOMAP) indicator.
The supply zone, ranging from $0.96 to $0.98, exhibits a calculated selling pressure of 69.5 million ARB distributed across more than 27,000 addresses. This coincides with a resistance level at $0.983 on the price chart, a level that ARB has struggled to surpass.
With adequate momentum, if ARB manages to break through this resistance, it could aim for the higher target of $2.4, where substantial liquidity is concentrated.