Price Analysis

Arbitrum Poised for Rebound: ARB Price Will Soon Breakout After 3-Months of Correction

After being trapped in a correction mode in the past three months, Arbitrum (ARB), a leading Ethereum-based layer two (L2) scaling solution that has facilitated more than $12.5 billion in bridged TVL, has signaled an inevitable rebound in the coming month. With a fully diluted valuation of about $10 billion, the mid-cap altcoin has established a solid support level of around $1 after dropping 33 percent in the past month.

Backed by reputable crypto venture capital firms and web3 developers, Arbitrum has grown to a top-tier scaling solution. Moreover, the recent Ethereum network upgrade dubbed Dencun dramatically reduced the transaction fees for the layer-two networks.

Arbitrum Rising On-chain Activity

Having attracted dozens of reputable Web3 projects on the Ethereum ecosystem—led by Pendle yield, AAVE V3 lending, GMX derivatives, and Uniswap—the Arbitrum network has resultantly registered heightened on-chain activity. 

According to market data provided by IntoTheBlock, the number of daily transactions on the Arbitrum network has recently increased significantly to about 2 million, up from 1 million in early March.

ARB Price Midterm Targets

Having established itself as a leader in the Ethereum scaling solution, ARB demand is bound to outshine the supply. Currently, only a quarter of ARB’s max supply is in circulating supply.

According to a popular crypto analyst Ali Martinez, the TD Sequential indicator has presented a buy signal on the weekly ARB price against the U.S. dollar. As a result, the crypto analyst expects ARB price to register at least four bullish weekly candlesticks. 

In the short term, ARB price could reach $1.25, which coincides with the 0.618 daily Fibonacci Extension. A successful breakout on this resistance level will pump the ARB price towards $1.5, which coincides with the 1.618 Fibonacci Extension.

SOURCE

Leave a Comment

MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf MrSf