- A rounded bottom pattern has emerged, with ARB targeting $2.42 after breaking the $1.30 resistance.
- Market sentiment supported ARB’s bullish outlook, signaling continued momentum.
Arbitration [ARB] has attracted significant attention in the crypto market, fueled by its impressive price performance and increasing trading activity.
At the time of writing, ARB is trading at $0.6947, up 11.29% over the last 24 hours. Trading volume has also skyrocketed 200% to $1.10 billion, reflecting strong interest from market participants.
However, the critical question remains: can ARB maintain its bullish momentum and surpass the USD 1.30 resistance, paving the way for a climb towards USD 2.42?
Rounded bottom indicates a possible rally
The weekly chart painted an optimistic picture with the appearance of a rounded bottom pattern, a strong indicator of a bullish reversal.
This pattern suggested that ARB could continue its upward trajectory, provided it clears the immediate resistance at $1.30.
A decisive breakout above this level would likely attract additional buyers, pushing ARB towards its ambitious target of $2.42. Conversely, the inability to cross $1.30 could be a sign of a potential consolidation phase.
Source: TradingView
Arbitrum: Strengthening momentum
Momentum indicators further strengthened the bullish outlook for ARB.
The RSI on the daily chart was 57.37 at the time of writing, which while indicating bullish momentum, leaves room for more upside before reaching overbought territory.
Similarly, the MACD showed a bullish crossover, with the MACD line firmly above the signal line. These figures highlighted growing market optimism and suggested that buyers are gaining control.
However, any sign of weakening could lead to a relapse in the short term.
Source: TradingView
On-chain ARB signals reinforce bullish sentiment
On-chain signals largely support the bullish case for ARB.
The in the money measure, up 1.81%, reflected growing profitability for holders, while the 8.68% increase in large trades indicated increased activity from institutional investors or whales.
However, the 0.71% decline in net network growth revealed some hesitation in recruiting new participants, which could pose a challenge to sustainable growth.
Moreover, the bullish concentration measure of 0.33% suggested continued accumulation by long-term holders, a positive sign for stability.
Source: IntoTheBlock
Will traders push the ARB higher?
Sentiment data further underlined the cautious optimism. The Long/Short ratio shows that 51.43% of traders were in long positions at the time of writing, indicating a slightly bullish tilt.
This suggested growing confidence in ARB’s ability to overcome the resistance at $1.30.
Source: Coinglass
Read Arbitrums [ARB] Price forecast 2024–2025
Ultimately, ARB is well positioned for further gains, supported by a rounded bottom pattern, bullish technical indicators and mostly positive on-chain metrics.
However, breaking the USD 1.30 resistance is crucial to confirm the upside momentum. If ARB can overcome this level, the $2.42 target could become a reality in the near future.
Credit : ambcrypto.com
