Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Arbitrum has broken through critical resistance in the past day with a 9% gain.
- Rising open interest and financing rates pointed to further gains.
Arbitration [ARB] continued its strong bullish rally and broke above the $0.919 resistance level. This extended its bullish gains by 9% over the past 24 hours.
How much are 1,10,100 ARBs worth today?
With Bitcoin [BTC] If they reach $28,000 in the same period, the ARB bulls could reach the $1 level in the coming days.
Bulls show their strength
Source: ARB/USDT on Trading View
Arbitrum started its road to recovery after hitting a low of $0.75 in early September. The bullish recovery hit a major hurdle at the resistance at $0.919. Still, the bears were unable to resist the buying pressure as the bulls reversed the level in support.
The Relative Strength Index (RSI) highlighted the bullish momentum as it climbed into the overbought zone. Similarly, the Chaikin Money Flow (CMF) revealed continued capital inflows by remaining above the zero level and trading at +0.13 at the time of writing.
With the bullish rally breaking the lower low of the bearish swing, buyers could push for further gains between $1 and $1.1. Alternatively, a BTC reversal below $28,000 could bring sellers back into play for a retest of the new support at $0.919.
Buyers were happy with rising open interest and positive financing rates
Source: Coinalyse
According to Coinalyse, Open Interest data recorded a spike from $89.46 million to $122.74 million over the past five days. This confirmed the bullish bias as market participants tried to capitalize on the price rally.
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The financing rates were also very positive, especially over the longer terms. This reflected buyers’ confidence in further profits for Arbitrum.