- A bullish divergence has appeared on Arbitrum’s price chart.
- Market indicators supported the bullish breakout.
Last week, several cryptocurrencies faced the wrath of the bears, Arbitrage (ARB) It has turned slightly bullish. However, the story is more about the token as it looks like it is on the verge of breaking out of the bullish pattern, which could lead to double-digit price gains in the coming days and weeks.
Will Arbitrum Turn Bullish?
CoinMarketCap’s data ARB bulls have shown a slight upward trend in the token price over the past 24 hours. At the time of writing, ARB is trading at $0.5019 with a market cap of over $1.75 billion.
The bad news is that 0% of ARB investors made a profit. Into the blockHowever, this trend may change in the future.
According to AMBCrypto’s analysis, there has been a slight increase in long-term holders (investors) who have held tokens for more than a year, reflecting their confidence in the price increase.
Source: IntoTheBlock
The good news is that the token price is moving within a bullish pattern. Popular crypto analyst World Of Charts tweeted out that a bullish falling wedge pattern has been revealed.
At the time of writing, it was just before a breakout that could have resulted in a 25% price rally. In fact, a bullish divergence was seen on one of the technical indicator charts, further suggesting a bullish breakout.
Source: X
Mapping ARB’s Path Ahead
We then evaluated the token’s on-chain data to see what indicators suggested a bullish breakout. Analysis of Santiment’s data showed that Arbitrum’s MVRV ratio improved.
In addition, the token’s network growth also spiked on September 6. A rising metric means more new addresses are being created.
Source: Santiment
But Coinglass’ data It showed a bearish signal. According to the data, the long/short ratio of Arbitrum has been in a downward trend. This means that there are more short positions than long positions in the market, which can be inferred as a bearish signal.
Therefore, we checked the daily chart of the token to better understand if a bullish breakout is possible.
Realistic or not, here it is. ARB’s market cap in BTC terms
We found that most market indicators are bullish on the token, for example, Arbitrum’s Chaikin Money Flow (CMF) is trending higher.
The Relative Strength Index (RSI) followed a similar trend, indicating a high probability of price action leading to a bullish breakout.
Source: TradingView