- A critical price limit is tested by ARB, although a strong momentum can work in favor of the assets.
- The liquidity inflow in the market has remained high, which has supported the potential of ARB for a rally.
One of the most striking profit on the market in the last 24 hours was registered by Arbitrum [ARB]Such as the active within that period came together by 26%.
The market sentiment is not expected to change in the short term, because the Bullish market cohort has remained. The liquidity inflow remains high, with technical indicators that also confirm the prevailing bullish market advantage.
ARB at a crossroads
At the moment, the Rally of ARB has stalled after encountering a critical resistance level at $ 0.5050 on the graph.
The Fibonacci retracement level indicates that the price range between $ 0.5050 (resistance) and $ 0.4429 (support) has succeeded historically as a consolidation zone for price action.
Source: TradingView
Previously, this level of support was violated, which caused a competitive price earlier in the year. To continue the rally, the resistance level must be broken. An outbreak can indicate the start of a new upward phase.
The most important question now is whether the price will consolidate, fall lower or the benefit will break out.
Which path will ARB take?
Analysis based on current technical indicators suggests that a bullish can be taken by ARB.
The parabolic SAR indicator (stop and reverse), which helps to identify the market direction based on the position of plotted dots, is currently preferable to a bullish trend.
Dots above the price indicate a bearish trend, while dots under the price signal Strong Bullish Momentum.
Source: TradingView
The graph indicates that ARB is in a bullish phase, with parabolic sar dots under the price, which suggests a potential upward movement.
This trend is reinforced by the average directional index (ADX), which rises.
A higher ADX indicates that the current course direction – quiet or bearish – is gaining strength. Because both ARB and ADX are up, an outbreak above the resistance level seems increasingly likely.
Liquidity flow is on the high side
The liquidity inflow in the market has remained increased, which may contribute to the current Rally of ARB.
At the time of writing, ARB registered a net inflow of $ 63.9 million. The 24-hour inflow is currently $ 32.13 million.
Give inflow levels so high that more investors keep ARB than before.
Source: Defillama
At the same time, the trade volume for ARB on decentralized stock exchanges has also remained increased, which further contributes to the growth of the active.
At the time of the press, the trade volume has reached $ 1,171 billion over the past 24 hours, with the weekly volume now at $ 4.871 billion, which reflects an increase of 129.25%.
If this bullish activity continues, ARB can break the resistance of $ 0.5050 and expand its upward trend.