- Arbitrum’s descending channel could end soon, with analysts predicting a 2x rally if the breakout is confirmed.
- 94% of ARB holders are in the red, but a potential breakout could mark a major turnaround.
Arbitration [ARB] has shown minor fluctuations over the past 24 hours, trading within a narrow range between $0.59 and $0.61. At the time of writing, ARB was trading on $0.5977which represents an increase of 0.85% over the past day and an increase of 11.23% over the past week.
With a circulating supply of 3.5 billion ARB tokens, the current market cap stands at $2.09 billion, supported by a trading volume of $182.4 million in the last 24 hours.
Market analyst Captain Faibik noted,
“$ARB is currently moving within a descending channel. It now appears to have bottomed out and is on the verge of an outbreak. If it breaks out successfully, we could see a 2x Bullish Rally within 2-3 months.”
This potential breakout is being closely watched by traders as it could mark a significant shift in ARB’s price trajectory.
ARB has been trading within a descending channel since March 2024, characterized by lower highs and lower lows. The price has consistently adhered to the channel boundaries and is showing a clear downward trend.
However, recent moves suggest that ARB may be trying to break this pattern.
Source:
Bollinger bands tighten: outbreak imminent?
The ARB/USDT chart shows that the price is currently trading near the middle Bollinger Band, indicating consolidation after a recent downtrend.
The narrowing of the Bollinger Bands indicates reduced volatility, which could indicate an impending breakout as the price approaches the upper band around $0.62.
Further supporting this outlook is that the MACD has shown a bullish crossover, with the MACD line moving above the signal line.
This indicates potential upward momentum; however, the small positive bars in the histogram indicate that the strength of this momentum is still weak and requires further confirmation.
Source: Trading view
Meanwhile, the RSI (Relative Strength Index) is hovering around 50, reflecting the market’s indecisiveness. A move above 60 could indicate a shift to bullish momentum, while a drop below 40 could indicate renewed selling pressure.
ARB holders are suffering as a breakout looms
Despite these technical indicators, broader market sentiment appears cautious. According to data from InTheBlokCurrently, 94% of ARB holders are losing, while only 4% are profiting at the current price.
Large farmers, who control 82% of the total supply, dominate the market, which could influence price movements.
The token also shows a strong correlation with Bitcoin, with a correlation coefficient of 0.95, indicating that ARB’s price may continue to closely follow Bitcoin’s trends.
Source: InDeBlock
Over the past week, new addresses have decreased by 6.62%, while active addresses have increased by 24.98%, indicating growing user engagement.
However, the number of zero-balance addresses has increased by 55.73%, which could indicate an increase in inactive or abandoned accounts.
Source: InTheBlok
With ARB trading at $0.5977, market participants are keenly watching for signs of a breakout from the descending channel.
