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- 1 ARB price rebounded from the demand zone at the $1 mark.
- 2 Vital indicators suggest a short-term pullback in price action.
Over the last few months, the Arbitrum (ARB) crypto was in a correction phase and has witnessed severe distribution from the top around the $2 mark. However, the ARB token price has reached the demand zone and made a double bottom formation.
Per the price action, the Arbitrum (ARB) price might replicate a bounce and will retest the 50-day EMA mark, near the $1.30 mark. If the token fails to hold the $1 mark, a fresh lower low will be around the $0.7800 mark.
At press time, the Arbitrum crypto (ARB) price traded at $1.07 with an intraday drop of 3.89%, reflecting mixed cues and staying in the bearish region. It has a monthly return ratio of -27.10% and 11.29% yearly.
The pair of ARB/BTC is at 0.0000166 BTC, and the market cap is $1.36 Billion. Analysts are neutral and suggest that the ARB crypto may attain a bounce and will soon direct the gains toward $1.30.
What Arbitrum (ARB) Price Action Denote?
Per the TradingView data, the Arbitrum (ARB) price action signifies low volatility, and the price stayed near the demand zone throughout the week. However, the correction ended, and buyers began to accumulate.
ARB Price by
Source: TradingView
The intraday trading volume jumped over 3.40% to $303.65 million, signifying average investor interest. A break and close above the $1.20 mark would validate the trend reversal.
Network Growth and Transaction Count Analysis
Per the Santiment data, the Arbitrum (ARB) signifies a drop in the network growth and transaction count, which affected the asset’s price over the past few weeks.
Following market bearishness, the ARB token price drastically dragged over 35% last month and has witnessed seller dominance.
The Network Growth data noted a drop of over 37%, at 10.7k, whereas the transaction count data replicated a decline of over 23% to 47.7k, implying an overall downtrend.Per the GIOM indicator, only 11.04% of the total active addresses are looking to secure and hold the gains decisively, which might lead to a bounce soon.
Apart from the price action, 69.36% of the in-the-money holders at the current price level are in profit, and only 30% are still in danger zones.
Vital Indicators Suggest a Bounce, What’s Next For Arbitrum (ARB)?
The momentum indicator, the Relative Strength Index, witnessed a positive crossover, and the curve reverted from the oversold region, which implied a technical bounce ahead.
However, the MACD indicator still delivered the bearishness, and the histogram noted the red bars.
Arbitrum (ARB) token price was traded below the 38.2% Fibonacci retracement level and is close to the lower Bollinger Band, depicting the low volatile trading activity.
The immediate support level for the Arbitrum (ARB) token is $1.00, followed by $0.970, whereas the critical upside hurdle is around $1.20, followed by $1.40
Conclusion
The Arbitrum (ARB) token price depicted a double bottom formation and might display a bounce soon. Still, the token was traded in the bearish trajectory and needed to cross and sustain above the $1.20 mark.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
