- Arbitrum’s price breakout targets a 25.25% gain with rising buying interest and bullish indicators.
- Increased large ARB transactions and new addresses signal growing market activity and renewed interest.
Arbitrum [ARB] was experiencing upward momentum following a breakout from a falling wedge pattern. This bullish formation suggests that ARB could be heading toward higher price levels.
At press time, ARB was trading at $0.5174, reflecting a 1.55% increase in the past 24 hours and a 3.10% rise over the last week. The breakout occurred around the $0.51 level, with the next major resistance to watch being $0.6350, representing a potential 25.25% gain.
Source: TradingView
Technical indicators suggest upward trend
At the time of this writing, the Relative Strength Index (RSI) was around 59.83, indicating a bullish divergence in price action. This rising RSI reflects increased buying interest, reinforcing the possibility of further price gains.
If the RSI continues to climb, traders may see stronger buying momentum.
In addition to the RSI, the Bollinger Bands show narrowing, signaling reduced volatility. With the price hovering near the middle band at $0.5298, the market shows indecision.
A breakout above $0.6091 could confirm a bullish reversal, while a drop below $0.4505 may lead to further declines.
Source: TradingView
The MACD indicator was displaying a weak bullish crossover, with the MACD line crossing above the signal line. This suggests positive momentum is starting to form, although the MACD remains below the zero line, signaling 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 forming, with the Aroon Up at 64.29%. For this trend to be confirmed, the price must break above $0.5298.
Should ARB fail to hold above this level, the market could see a continuation of the recent bearish trend, especially if the price dips below the $0.50 mark.
Arbitrum transactions and activity surge
Over the past 24 hours, ARB recorded 190 large transactions, matching the 7-day high observed on 6th September. This increase in large transactions suggests renewed interest and activity in the Arbitrum market.
Realistic or not, here’s ARB’s market cap in MATIC terms
In contrast, the 7-day low was recorded at 66 transactions on 3rd September indicating a recent uptick in market activity.
Source: IntoTheBlock
Additionally, DeFiLlama data shows that Arbitrum’s Total Value Locked (TVL) stands at $2.514 billion, with 395,133 active addresses and 22,995 new addresses registered in the last 24 hours.
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