Reaching an all-time high Total Value Locked (TVL) of $5 billion, Arbitrum [ARB] has hit a significant milestone, signaling increasing investor trust and market enthusiasm. This achievement underscores a strong dedication to the project’s potential, and technical charts indicate a bullish breakout following an extended period of consolidation.
As ARB approaches a crucial resistance level at $1.2, a golden cross formation emerges. The question now arises: will this bullish momentum persist, or will resistance halt its upward trajectory?
Probable Breakout Post Consolidation, Yet a Challenge Awaits
Having broken free from a prolonged rectangular consolidation phase of over two years, Arbitrum may face a need to retest this resistance before a clear breakout can occur. Surpassing $1.2 successfully could propel ARB prices towards $2.2.
Subsequently, traders and investors are attentively eyeing this resistance level, eager for confirmation of a bullish trend through a sustained breakout. The presence of a golden cross formation further reinforces this positive outlook, hinting at the potential for more upward movement.
As of the latest data, Arbitrum is trading at $1.07, marking a 7.15% decrease over the past day. Nevertheless, the Relative Strength Index (RSI) sits at 62.3, signifying strong bullish momentum. Despite short-term declines, this resilience implies that buyers are still holding sway over the market.
With the RSI at such elevated levels, it appears that ARB enjoys substantial backing from investors, maintaining a bullish stance even amidst recent price corrections.
Is ARB Seeing Healthy User Engagement?
Currently, ARB boasts a modest 22.5K daily active addresses, indicating stable user involvement while leaving room for expansion. With increased user interaction, trading volume could see a boost, thereby fortifying market dynamics and attracting more investor participation.
Consequently, heightened engagement would signify amplified interest and possibly greater trading activity in the near term.
The Open Interest Weighted Funding Rate registers at 0.0355, underscoring positive sentiment among futures traders. This metric accentuates investor trust and enthusiasm in ARB contracts.
Furthermore, it suggests a willingness among traders to take long positions, potentially fueling additional bullish momentum.
Promising Bullish Momentum Despite Resistance as a Major Hurdle
The current performance of ARB indicates a robust bullish trend, underpinned by a record TVL and a breakout from extended consolidation. While facing a crucial test at the $1.2 resistance level, the presence of a golden cross and favorable indicators point towards sustained upward mobility.
Therefore, while short-term retracements are plausible, the strong bullish momentum persists, and a successful breach above $1.2 could propel ARB prices significantly higher.