DeFi
Network Activity, DeFi TVL Expands, Can ARB Climb to $1.7?
Arbitrage price forecast: the Bitcoin Price hovering above $67,000 since last week has triggered broader market consolidation. Like most major altcoins, Arbitrum shows this uncertainty in price behavior. The coin price develops alternate green and red candles in the daily chart between the horizontal levels of $1.26 and $1.12. Will this lack of initiative from buyers or sellers result in a prolonged sideways trend in ARB price?
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Arbitrage Price Prediction: Inverted Health and Safety Model Portends Major Reversal
Amid a broader market recovery, the Arbitration developed a local bottom at the $0.923 level. A potential reversal of this support increased the altcoin’s value by 38% to challenge overhead resistance at $1.275.
The current rise in ARB price is likely due to significant growth in network activity, highlighted by Arbitrum’s recent milestone of processing over a billion transactions on its One and Nova networks.
Additionally, data from on-chain analytics aggregator DeFiLlama reveals that the total value locked (TVL) in Arbitrum increased from $2.34 billion in early May to $3.093 billion, a substantial growth of around 32.2%.
This increase in TVL signifies growing trust and investment in the Arbitrum network, indicating a robust and expanding ecosystem that continues to attract more users and capital.
An analysis of the daily chart shows that ARB price is developing a bullish reversal pattern called an inverse head and shoulders pattern. If the chart pattern holds true, Arbitrum currently trading at $1.18 could break overhead resistance at $1.275.
This potential breakout will accelerate buying momentum and set the asset to higher targets at $1.6, followed by $1.74.
Technical indicator:
- Exponential moving average: A recent 20-day breakout EMA could provide buyers with dynamic support to lead the rally higher.
- Relative Strength Index: The daily RSI slope above 55% reflects bullish sentiment among market participants.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a solid grasp of technical analysis, he keeps a vigilant eye on the daily price movements of major assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging field of cryptocurrencies, where he continues to explore opportunities driven by his passion for trading.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.