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Arbitrum’s recent surge, marked by a record $5 billion total value locked (TVL), signals a potent bullish trend in the crypto market.
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The remarkable rise in TVL reflects not just investor confidence but also the potential for future price appreciation as traders watch key resistance levels.
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According to COINOTAG, “The golden cross formation is a strong indicator that ARB’s price could see significant upward movement if it clears the $1.2 resistance.”
Arbitrum’s TVL reaches $5 billion, highlighting a strong bullish trend as ARB eyes key resistance levels. Will the momentum continue?
Breakout from consolidation likely, but a test lies ahead
Arbitrum has successfully broken out from a prolonged rectangular consolidation phase that lasted over two years. This breakout indicates not only a renewed optimism among traders but also a potential to retest previous resistance levels. Should ARB surpass the critical threshold of $1.2, projections suggest a possible surge towards $2.2, marking significant growth for investors.
Traders are increasingly optimistic, keenly observing the resistance level. A sustained breakout is crucial to confirm the bullish trend, particularly as the golden cross formation adds credibility to this positive outlook, suggesting that further upward movement is indeed probable.
Source: TradingView
Currently, Arbitrum is trading at $1.07, reflecting a 7.15% drop over the past day. However, the Relative Strength Index (RSI) at 62.3 indicates strong bullish momentum, showcasing the determination of buyers even during slight price corrections.
This persistent strength in the RSI emphasizes that, despite recent fluctuations in price, investor confidence in ARB remains solid, offering a well-supported bullish outlook.
Source: TradingView
ARB: A healthy level of engagement?
The crypto project boasts a moderate 22.5K daily active addresses, indicating a steady user engagement while still providing room for growth in participation rates. Increased user activity could correlate with heightened trading volume and stronger market dynamics moving forward.
This uptick in engagement reflects more significant investor interest, potentially translating into increased trading momentum as the community continues to expand.
Source: Santiment
The Open Interest Weighted Funding Rate currently stands at 0.0355, signaling notably positive sentiment among futures traders, which underscores a growing confidence in ARB contracts.
This indicates that traders are inclined to engage in long positions, further fueling bullish momentum and suggesting potential for upward price action.
Source; Coinglass
Bullish momentum likely but resistance remains a key hurdle
The performance of ARB indicates a robust bullish trend, bolstered by a significant rise in TVL and the successful breakout from a longstanding consolidation phase. Nevertheless, the resistance at $1.2 remains a pivotal point to watch, as it challenges the ongoing upward trajectory. The combination of bullish indicators suggests that, although short-term setbacks are possible, the momentum appears strong, and overcoming this resistance could lead to pronounced price advancements.
Traders should remain vigilant as developments unfold.
