Before correcting on the charts, Arbitrum One (ARB) jumped about 11% in just 24 hours. In doing so, it ranked third as the best performer among the top 100 cryptos by market capitalization. Its daily trading volume jumped 17% and also reached $176 million.
This breakout prompted predictions from market analysts, who supported a possible continuation. What were these price targets for the ARB token?
Arbitrage reverses from $0.09 demand zone
On the charts, ARB price has rebounded from the demand zone at $0.0955 as shown by the Reversal Detection indicator. The reversal occurred as price approached the oblique resistance in place since February 14.
The MACD was green over the past five days as the bulls continued to strengthen. This strength could put ARB on the path to $0.22, which the indicator has identified as the supply zone. The zone was about 133% from the breakout level.
The altcoin appeared to be forming a new structure with higher lows and higher highs. The last of these was around $0.0983, which appeared to be the new breakout test.
Additionally, the RSI was oversold at 33.83 – indicating seller exhaustion. Such a signal usually prompts buyers to intervene, especially after a breakdown of oblique resistance.
Source: ARB/USDT on TradingView
According to crypto market analyst CryptoBull, the altcoin broke out of a trending channel after volume exploded to $0.09. The analyst also predicted that the target for the altcoin would be between 30% and 40%, or around $0.145.
However, ARB price appears to have stalled from this move at $0.10.
Analysis of the thriving network activity on the ARB chain
In addition to technical developments, network activity is also increasing. Monthly token trading volume jumped 21%, reaching $3.40 billion.
Additionally, revenue and expenses during the month increased by 28%, to $1.2 million. Active addresses on Arbitrum One also increased by 53%, reaching 4.1 million.
Source: Token Terminal
The number of transactions during the day amounted to 3.6 million, maintaining its daily average, which was above the 3 million mark. These transactions totaled 30.9 million over the last seven days.
This figure represented 14.6% of total transactions for all Ethereum (ETH) Layer 2 (L2) networks. Collectively, their weekly total was 211.4 million at the time of publication.
Source: Token Terminal
Network activity showed Arbitrum’s dominance over L2 ETH, as it was only second to Base Chain.
In total, strong network activity and price action signals could propel ARB price towards $0.22. But only if the current momentum is not lost.
Final Summary
- Arbitrum One surged more than 11% in 24 hours following a breakout and increased network activity.
- ARB price was trading above an inclined resistance level, indicating a potential change in the direction of the altcoin market.
