Press Release

Arbitrum Price: ARB Holders Mull Over Impending 14% Rally

Arbitrum price rally from $1.54 support in January stalls to collect liquidity at $2 before continuing above $2.4.

Published by

Published 15 Feb, 2024 | 06:30:16 PM UTC

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.

Arbitrum price chart | Tradingview

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.

John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Published by

John Isige

Published 15 Feb, 2024 | 06:30:16 PM

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