Arbitrum [ARB] stands at a critical juncture, poised for a potential breakout that could trigger a substantial increase in its price, as per market analysts’ observations.
Over an extended period, the token has been navigating a descending channel, encountering consistent resistance at the channel’s peak while finding support at its nadir.
At present, the price of ARB is lingering near the upper boundary of this channel, suggesting the possibility of a bullish reversal upon breaching this crucial threshold.
An analysis indicates that should a breakout materialize, ARB’s price could climb to an estimated $1.50, reflecting a potential surge of 182.72% from its current value of $0.5082.
With the token tussling with the resistance level, traders are keenly observing its maneuvers to discern if a substantial rally will be triggered.
Recent Weakness in ARB’s Price and Trading Metrics
Despite the looming breakout potential, ARB has seen a recent downturn in its price performance. The token has experienced a -5.07% decline over the past 24 hours and a -1.11% decrease in the last seven days.
With a circulating supply of 3.5 billion ARB tokens, its market cap stood at $1.77 billion at the time of writing.
In addition to the price dip, on-chain activities have waned, as evident from the dwindling transaction volume associated with ARB, which has recorded an average of 50.7k transactions over the past seven days.
Notably, the highest transaction volume during this period was on September 11 at 61.64k, while the lowest was on September 14, standing at 31.18k.
Furthermore, significant transactions have also decreased, with only 51 transactions reported in the last 24 hours, down from a peak of 110 on September 10.
Despite this diminished activity, the token’s price has remained steady around $0.50, leaving questions about the potential breakout unanswered.
Varied Signals from On-Chain Metrics
Recent data from IntoTheBlock has revealed a mix of positive and negative trends in ARB’s on-chain metrics. New addresses have witnessed a 13.73% increase over the past week, totaling 2.24k.
Conversely, active addresses have seen a decline of 6.67%, dropping to 9.66k. Meanwhile, zero balance addresses have surged by 8.28%, indicating a rise in dormant accounts.
Amidst these metrics, ARB’s total value locked (TVL) has remained strong, reaching $2.47 billion at present, according to DefiLlama.
The stablecoin market capitalization on the platform is recorded at $4.701 billion, along with $11,118 in fees and $9,417 in revenue in the past 24 hours.
Despite the robust performance in the DeFi sector, this positive momentum has not yet translated into a price recovery for ARB; however, the potential breakout could alter this trajectory.
A recent analysis by CryptoCrypto has highlighted that almost all ARB holders are currently at a loss.
This downturn reflects the prolonged bearish trend of the token in recent months, despite the platform’s strong TVL performance and market share within the DeFi realm.
The persistent decline in the token’s value has sparked concerns among holders, particularly as on-chain activities exhibit signs of deceleration.