Before it corrected on the charts, Arbitrum One (ARB) surged by about 11% in just 24 hours. In doing so, it came in third as the best performer in the top-100 cryptos by market cap. Its daily trading volume jumped by 17% and hit $176 million too.
This breakout elicited predictions from market analysts as they backed potential continuation. What were these price targets for the ARB token?
Arbitrum reverses from $0.09 demand zone
On the charts, ARB’s price bounced from the demand zone at $0.0955, as seen from the Reversal Detection indicator. The reversal occurred as the price traded near the slanting resistance that has been in place since 14 February.
The MACD was green over the last five days, with bulls continuing to gain strength. This strength could put ARB on a path towards $0.22, which the indicator identified as the supply zone. The zone was about 133% away from the breakout level.
The altcoin seemed to be forming a new structure with higher lows and higher highs. The latest of them was around $0.0983, which seemed to be the retest for the breakout.
Additionally, the RSI was oversold at 33.83 – Indicating exhaustion among sellers. Such a signal typically prompts buyers to step in, especially after a breach of slanting resistance.
Source: ARB/USDT on TradingView
According to crypto market analyst CryptoBull, the altcoin broke out from a trend channel after volume exploded at $0.09. The analyst also predicted the altcoin’s target was between 30% and 40% – At around $0.145.
However, ARB price seemed to be pausing from this movement at $0.10.
Analyzing thriving network activity on ARB chain
Apart from the technical breakout, the network activity has been on the up too. The monthly token trading volume jumped by 21%, reaching $3.40 billion.
Moreover, both revenue and fees over the month rose by 28%, clocking in at $1.2 million. Active addresses on Arbitrum One grew by 53% too, hitting 4.1 million.
Source: Token Terminal
The transaction count during the day was at 3.6 million, maintaining its daily average, which was above the 3 million-mark. These transactions totaled 30.9 million over the past seven days.
This figure accounted for 14.6% of total transactions for all Ethereum [ETH] Layer 2 (L2) networks. Collectively, their weekly total was 211.4 million at press time.
Source: Token Terminal
The network activity showed Arbitrum’s dominance over ETH L2s, as it was only second to Base Chain.
Altogether, the strong network activity and price action signals could propel ARB’s price towards $0.22. However, only if the prevailing momentum is not lost.
Final Summary
- Arbitrum One surged by over 11% in 24 hours following a breakout and surge in network activity.
- ARB’s price was trading above a slanting resistance level, indicating a potential shift in the altcoin’s market direction.
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