- Arbitrum’s descending channel may soon end, with analysts predicting a 2x rally if the breakout is confirmed.
94% of ARB holders are in the red, but a potential breakout could signal a major turnaround.
As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the current situation surrounding Arbitrum [ARB]. The Descending Channel that ARB has been trapped within since March 2024 seems to be coming to an end, according to analyst Captain Faibik. If the breakout is confirmed, we could potentially witness a 2x Bullish Rally in the next 2-3 months – quite the exciting prospect for investors!
In the past 24 hours, Arbitrum [ARB] has experienced small price changes, trading between $0.59 and $0.61. Currently, ARB is being traded at $0.5977, which is a 0.85% growth compared to yesterday, and a 11.23% increase over the last seven days.
3.5 billion ARB tokens are currently in circulation, giving the token a market value of approximately $2.09 billion. This high value is based on a trading volume of around $182.4 million over the last day.
Market analyst Captain Faibik noted,
At the moment, ARB seems to be confined within a Falling Channel. It looks like it has reached its lowest point and is about to break free. If it manages to escape, there might be a potential 2x price increase in the next 2-3 months.
Traders are keeping a close eye on this possible price surge in ARB, as it might signal a major change in the stock’s direction.
Since March 2024, ARB‘s price movement has been confined to a falling trendline, marked by recurring lower peaks (highs) and troughs (lows). This pattern demonstrates a persistent decline in its value as it sticks closely to the boundaries of this channel.
However, recent movements suggest that ARB may be attempting to break out of this pattern.
Bollinger bands tighten: Breakout imminent?
ARB/USDT chart reveals that the price is currently trading near the middle Bollinger Band, indicating consolidation following a recent downtrend.
As the Bollinger Bands shrink, it indicates a decrease in market volatility. This could potentially mean that a price breakout is about to occur since the value is approaching the upper band, currently at approximately $0.62.
Additionally reinforcing this viewpoint, the Moving Average Convergence Divergence (MACD) exhibits a positive crossover, meaning that the MACD line is now positioned above the signaling line.
This could imply a possible increase in trend, but the modest height of the bars in the chart suggests that the power behind this rise is currently quite low and needs more evidence to be certain.
Currently, the Relative Strength Index (RSI) is hovering near 50, which signifies market uncertainty. If it rises above 60, it may signal a trend towards increased buying activity, or bullish momentum. Conversely, if the RSI falls below 40, it could imply renewed selling pressure in the market.
ARB holders suffer as breakout looms ahead
Regardless of the technical signals, there seems to be a sense of caution prevailing among investors in the broader market. Based on information from IntoTheBlock, approximately 94% of ARB holders find themselves in a losing position, while just 4% are currently making a profit at the current price level.
A small number of major stakeholders, accounting for 82% of the overall supply, significantly impact the market dynamics, potentially shaping price fluctuations.
This token appears to have a very high association with Bitcoin, indicated by a correlation coefficient of 0.95. In simpler terms, this means that the value of ARB could potentially mirror Bitcoin’s market movements quite closely.
Over the past week, the number of new addresses has decreased by 6.62%, while active addresses have risen by 24.98%, indicating growing user engagement.
It seems that the number of my idle or unused crypto wallets has soared by about 55.73%. This rise might suggest a trend towards inactivity or disuse among accounts, possibly due to various reasons such as forgetting passwords, loss of interest, or other factors.
With ARB currently valued at $0.5977, market observers are closely monitoring potential indications of a breakout beyond the downward trending channel.
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2024-08-26 19:04