Arbitrum (ARB) recently broke above a key resistance level, signaling that further gains may be in the cards.
So let’s take a closer look at ARB’s on-chain metrics and metrics to see if investors should expect it to hit $2 soon.
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Famous cryptocurrency influencer Crypto Tony recently posted a tweet on X (formerly Twitter) highlighting how ARB broke through key resistance levels. According to the tweet, Tony stated that ARB has successfully surpassed the $1.07 mark.
The ARB may do so for the first time after mid-August 2023, raising hopes of further price increases in the coming days.
— CryptoTony (@CryptoTony__) November 4, 2023
CoinMarketCap data shows that ARB price is actually moving higher. It’s up more than 2% in the past 24 hours.
As of this writing, ARB is trading at $1.10 and has a market capitalization of over $1.39 billion. This makes it more likely to reach $2. However, upon closer inspection, another scene emerged.
While the price has increased, ARB’s trading volume has declined, meaning investors are less willing to trade the token. Market sentiment for Arbitrum has also turned bearish, with its bullish sentiment plunging more than 52% in the past 24 hours, as has its social engagement.
However, some data suggests ARB is continuing to raise prices.
For example, Arbitrum’s AltRank has been improved, which increases the chances of continued price appreciation. Not only that, ARB’s MVRV rate has also increased significantly. Its network growth rate remains high, which means more new addresses are created for transactions.
Whale and investor confidence in ARB also remains high. This is evident from the increase in both the number of ARB whale transactions and the total number of holders over the past week.
Arbitrum’s relative strength index (RSI) has entered overbought territory, which could put selling pressure on ARB, pushing its price lower. Another bearish indicator is ARB’s Bollinger Bands.
This indicator indicates that ARB price has reached an upper limit, increasing the possibility of a trend reversal. However, the MACD indicator shows a clear bullish advantage for the market. Its Chaikin Cash Flow (CMF) was also updated, suggesting prices will continue to rise.
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According to AMBCrypto