Arbitrum Price: ARB Holders Mull Over Impending 14% Rally

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.

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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.

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