- Arbitrum’s price breakout targets a 25.25% gain with rising buying interest and bullish indicators.
- Increased large ARB transactions and new addresses indicate growing market activity and renewed interest.
Arbitration [ARB] experienced upward momentum after breaking out of a falling wedge pattern. This bullish formation suggests that ARB could be heading towards higher price levels.
At the time of writing, ARB was trading on $0.5174which reflects an increase of 1.55% in the past 24 hours and an increase of 3.10% in the past week. The breakout occurred around the $0.51 level with the next major resistance at $0.6350, representing a potential 25.25% profit.
Source: Trading view
Technical indicators point to an upward trend
At the time of writing, the Relative Strength Index (RSI) was around 59.83, indicating a bullish divergence in the price action. This rising RSI reflects increased buying interest, reinforcing the possibility of further price gains.
If the RSI continues to rise, traders could see stronger buying momentum.
In addition to the RSI, the Bollinger Bands show a narrowing, indicating reduced volatility. With the price hovering around the middle band at $0.5298, the market is showing indecisiveness.
A break above $0.6091 could confirm a bullish reversal, while a decline below $0.4505 could lead to further declines.
Source: Trading view
The MACD indicator showed a weak bullish crossover, with the MACD line crossing above the signal line. This suggests that positive momentum is starting to form, although the MACD remains below the zero line, indicating that the overall market trend is still bearish.
A move above the zero line would confirm stronger bullish momentum.
The Aroon indicator also shows a potential bullish trend, with the Aroon moving up to 64.29%. To confirm this trend, the price must break above $0.5298.
Should the ARB fail to hold above this level, the market could see a continuation of the recent bearish trend, especially if the price falls below $0.50.
Arbitrum transactions and activity increase
In the past 24 hours, ARB has recorded 190 large trades, matching the seven-day high seen on September 6. This increase in the number of large transactions indicates renewed interest and activity in the arbitrage market.
Realistic or not, here is ARB’s market cap in MATIC terms
In contrast, a seven-day low was recorded on September 3 with 66 transactions, indicating a recent upturn in market activity.
Source: InTheBlok
Additionally, DeFiLlama data shows that Arbitrum’s Total Value Locked (TVL) is $2.514 billion, with 395,133 active addresses and 22,995 new addresses registered in the last 24 hours.
