As of the latest data, Arbitrum [ARB] was poised at a critical juncture, with experts indicating the possibility of a breakout that could result in a substantial price upswing.
The digital asset has been moving within a descending channel for a considerable duration, consistently encountering resistance at the channel’s upper limit and finding support at the lower end.
At the moment, the price of ARB is hovering around the upper threshold of this channel, indicating a potential bullish reversal in case it breaches this crucial level.
Based on recent analysis, there is a projection that ARB’s price could climb to about $1.50 in the event of a breakout. This forecast signifies a potential surge of 182.72% from its current valuation of $0.5082.
With ARB persistently testing the resistance level, traders are diligently observing its next move to ascertain if it could trigger a notable rally.
Price Downtrend and Trading Activity Fluctuations for ARB
Despite the potential breakout scenario, ARB has experienced a less favorable price action lately. The asset has witnessed a decline of -5.07% in the past 24 hours and a -1.11% drop over the previous week.
With a circulating supply of 3.5 billion ARB tokens, its current market capitalization stands at $1.77 billion.
Concurrent with the price dip, on-chain activities have also witnessed a decline. Data reveals that the transaction volume of ARB has been on a decreasing trend, with an average of 50.7k transactions over a 7-day period.
Within this timeframe, the highest transaction volume reached 61.64k on September 11, while the lowest was recorded at 31.18k on September 14.
Furthermore, substantial transactions have dwindled with only 51 transactions recorded in the past 24 hours, marking a decrease from the peak of 110 transactions on September 10.
Despite the reduced activity, the price has maintained stability around $0.50, raising speculations about the potential breakout scenario.
Mixed Signals in On-chain Metrics for ARB
Recent insights from IntoTheBlock have brought to light both positive and negative trends in ARB’s on-chain metrics. The number of new addresses has surged by 13.73% over the last week, reaching 2.24k.
However, the count of active addresses has dwindled by 6.67%, dropping to 9.66k. Conversely, zero balance addresses have seen an uptick by 8.28%, indicating an increase in inactive accounts.
Despite these metrics, ARB’s total value locked (TVL) remains robust, amounting to $2.47 billion at present, as per DefiLlama data.
The stablecoin market capitalization on the platform recorded $4.701 billion, with $11,118 in fees and $9,417 in revenue over the last 24 hours.
While this strong performance in the DeFi sector has not yet translated into a price rebound for ARB, the potential breakout may alter this scenario.
According to a recent report from CryptoCrypto, nearly 100% of ARB holders are presently in a loss position.
This depicts the prolonged downturn of the token in recent months, despite the platform’s commendable performance in terms of TVL and market presence in the DeFi landscape.
The downward trajectory of the token has raised concerns among holders, particularly with the slowdown in on-chain activities.