- While ARB’s price rose, its trading volume dropped in the last 24 hours.
- Investors’ confidence in ARB was high, but indicators looked bearish.
Arbitrum [ARB] has managed to surpass a key resistance level in the recent past. This episode suggested that the token’s price might pump further.
Read Arbitrum’s [ARB] Price Prediction 2023-24
Therefore, let’s take a closer look at ARB’s on-chain metrics and market indicators to find out whether investors should expect ARB to touch the $2 mark anytime soon.
Arbitrum’s price action looks ambitious
Crypto Tony, a popular crypto influencer, recently posted a tweet on X (formerly Twitter), highlighting how ARB crossed a key resistance level. As per the tweet, ARB managed to go above the $1.07 mark.
The token was able to do so for the first time after mid-August 2023, which gave hope for a further pump in its price over the days to follow.
The one resistance zone we need $ARB / #Arbitrum to close over to confirm ARB SEASON pic.twitter.com/r3gW2Izhh4
— Crypto Tony (@CryptoTony__) November 4, 2023
CoinMarketCap’s data revealed that ARB’s price was actually going up further. The token’s value surged by more than 2% in the last 24 hours.
At the time of writing, ARB was trading at $1.10 with a market capitalization of over $1.39 billion. This further made it seem likely that ARB could touch $2. However, upon closer inspection, a different picture was revealed.
While the token’s price surged, its trading volume dropped, meaning that investors were unwilling to trade the token. Market sentiment around Arbitrum also turned bearish as its bullish sentiment plummeted by over 52% in the last 24 hours, as did its social engagement.
Nonetheless, a few of the token’s metrics continued to be bullish.
Source: LunarCrush
For instance, Arbitrum’s AltRank improved, which increased the chances of a sustained price pump. Not only that, but the token’s MVRV ratio went up substantially. Its network growth remained high, meaning that more new addresses were created to trade the token.
Whale and investors’ confidence in ARB also remained high. This was evident from the fact that ARB’s whale transaction count and total amount of holders increased over the last week.
Source: Santiment
Realistic or not, here’s ARB market cap in BTC’s term
Looking forward
Arbitrum’s Relative Strength Index (RSI) had entered the overbought zone, which can exert selling pressure on ARB and, in turn, push its price down. Another bearish indicator was ARB’s Bollinger Bands.
The indicator revealed that ARB’s price had touched its upper limit, increasing the chances of a trend reversal. Nonetheless, the MACD displayed a clear bullish advantage in the market. Its Chaikin Money Flow (CMF) was also updated, suggesting a continued price uptick.
Source: TradingView