Arbitrum Price: ARB Holders Mull Over Impending 14% Rally
Highlights
- Arbitrum price must hold above $2 to prevent another dip to collect liquidity before rallying above $2.4 ATH.
- The RSI and the MACD on the four-hour chart back the rising tension, as investors take profits.
- Dips could prove profitable allowing sidelined investors to DCA and benefit from a potential rally to a new record high.
Arbitrum continues to draw attention from investors looking for alternative coins to diversify their portfolios ahead of the bull run in 2024. As a leading Ethereum Layer 2 protocol, Arbitrum stands out among its rivals such as Mantle (MNT), Optimism (OP), and Immutable (IMX) for significantly improving the scalability of Ethereum by combining multiple transactions into a single transaction as a rollup chain.
Arbitrum Price Prediction: Here’s Why ARB Is Poised To Hit $2.4
After Arbitrum ceded ground from the all-time high at $2.4 in January, investors jumped on the opportunity to buy the dip. The rising demand for the token in conjunction with a gradually improving market structure due to the uptake of Bitcoin ETFs and the hype surrounding the upcoming halving poised ARB for the ongoing rally.
From January’s low at $1.54, Arbitrum price rose 35% to $2.17, marking February’s peak. Due to profit-taking, Arbitrum had rolled back and was trading at $2.09 during US business hours on Thursday.
The 20-day Exponential Moving Average (EMA) (the blue line on the chart) provides ARB with immediate support. Respecting this buyer congestion area would help to keep the token buoyant above $2.06.
However, traders must consider the possibility of profit-taking taking a toll on Arbitrum’s ability to continue with the upturned targeting highs past $2.4.
A sell signal materializing from the Moving Average Convergence Divergence (MACD) indicator could perpetuate a larger decline likely to retest the lower trend line support close to the 200-day EMA (the line in purple).
The neutral yet falling Relative Strength Index (RSI) at 57 may accelerate the rate of profit-taking, considering the massive 35% increase from January’s low.
Recommended: Bitcoin Tops $52,000 – But Why Are These 5 Altcoins To Buy Soaring Even Higher?
It might not be wise to ponder shorting ARB before support at $2.06 is invalidated. Besides, bulls will have several chances to turn things in their favour, especially with the position of the upper accelerated trend line and the 50-day EMA (line in red) at $2.
Those bullish in Arbitrum will be looking out for a break above the yellow resistance band. Trading above this region would make ARB even more attractive to investors amid growing speculation of a breakout above $2.4.
Related Articles
- Solana Price Prediction As Surprise Rally Breaks $116 Level, Is SOL Reclaiming $130 Next?
- Shiba Inu Coin Forecast: SHIB Blasts Past $0.0000099; Will Bulls Reach $0.0001?
- LUNC Price: Terra Classic Pumps 15% In A Day As $128M In Trading Volume Rushes In
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
