- Summary:
- Arbitrum has been an underachiever in the current market rally. Could Thursday's spike usher a stronger uptrend?
Arbitrum price spiked by over 20 percent on Thursday, rising to a five-month high price of $0.860 at the time of writing. The crypto coin has been largely subdued during the current market rally, ans DeFi Total Value Locked (TVL)has also recorded a modest 1.5 percent growth in the last week.
The price spike has seen ARB price cross above the 200-MA level of $0.708 on the daily chart, which is a significant milestone considering its shap drop in the last six months. That said, a move to the psychological $1 mark could be more definitive for the crypto. Meanwhile, Arbitrum’s on-chain data signifies a lower selling pressure based on its performance relative to the current market rally.
According to analytics site, IntoTheBlock, only 4 percent of ARB holders have held it for less than a month. The majority (60 percent) have had it for between 1-12 months. Furthermore, 81 percent of investors are “Out of the money”, that means very few of them are in a position to sell their ARB for profit. Consequently, that could provide near-term support to the price.
Arbitrum price correlation with Bitcoin is at 0.89 as of this writing. Therefore, its performance could also depend on the sentiment created by Bitcoin’s ability to stay on the upside.
Arbitrum price prediction
Arbitrum price pivots at 0.753, and the buyers will be in control if action stays above that mark. The upward momentum is likely to meet initial rrsistance at 0.826. However, an extended control by the buyers could break above that level and test 0.783.
Conversely, a move below 0.753 will signal a shift in the momentum toward the downside. In that case, the price could find the first support at 0.733. If the momentum strengthens, the price will break below that mark and invalidate the upside narrative. Meanwhile, the resulting momentum could test the seciond support at 0.710.
