- Arbitrum rallied by 21.17% to hit $0.39 before retracing to $0.36.
- ARB’s upward momentum strengthened as buyers scooped up 148 million tokens.
Arbitrum [ARB] surged 21.17% after defending $0.30 support, hiking to a local high of $0.39 before slightly retracing to $0.36 by press time.
At the same time, the altcoin’s trading volume spiked 495% to $660 million at the time of writing, reflecting strong demand. With such massive gains, the question is: what triggered the uptick?
According to Lookonchain, the recent price uptick was driven by speculation over the Robinhood and Arbitrum partnership.
As per rumours, the two might partner to build a blockchain platform for European investors to trade U.S. stocks.
After these speculations filled the market, investors and fresh capital flowed into the market as they feared missing out (FOMO).
Demand for Arbitrum soars
Before the recent upswing, sellers had controlled the market for five straight days, with sell volume consistently outpacing buys. But that changed dramatically in the last 24 hours.
On the 30th of June, buyers returned with strength. According to Coinalyze, Arbitrum recorded $148 million in buy volume versus $132 million in selling volume, signaling a clear shift in market momentum.
Source: Coinalyze
The $16 million delta points to aggressive accumulation of the altcoin by investors.
Such a spike in buying activity typically reflects fresh capital inflows, as buyers rush in to take advantage of lower prices.
Amid this surge in demand, the altcoin’s netflow dropped sharply—down to -362.9k at the time of writing—indicating more tokens were being withdrawn from exchanges than deposited.
Source: CoinGlass
Often, when exchange withdrawals outpace deposits, it reflects substantial accumulation and potential selling pressure. Historically, such a market setup has preceded higher prices as downward pressure on prices dwindles.
Derivatives markets are even more bullish
Significantly, examining the derivatives market, we determine that these investors rushed into the market to take strategic positions.
According to CoinGlass data, Arbitrum’s Open Interest surged 43.2% to $248.8 million, while Derivatives volume jumped 538.4% to $1.23 billion.
Source: CoinGlass
At the same time, the altcoin’s long-short ratio spiked to 1.037. This confirms that these investors entered the market to take long positions.
It’s worth noting that when Open Interest rises while investors are going long, these investors anticipate prices to rise further.
Is ARB finally ready to rally, or just a fluke?
According to AMBCrypto’s analysis, Arbitrum’s recent price uptick was primarily driven by speculative buyers.
As a result, the altcoin’s MACD surged to -0.0057, at press time, after making a bullish crossover, signaling strong upward momentum and its continuation potential.
Source: TradingView
Furthermore, at the time of writing, the Relative Strength Index (RSI) surged to 57, edging into bullish territory. This suggests that buyers are dominating the market, especially after rising from 45.
That said, with buyers taking charge while upward momentum is strengthening, they set ARB for more gains.
Therefore, if buyers continue at this speed, Arbitrum could reclaim $0.39 and flip $0.40. But if the bull’s conviction wanes and sellers retake the market, ARB will retrace to $0.30 support.
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