- A bullish divergence appeared on Arbitrum’s price chart.
- Market indicators pointed to a bullish breakout.
While several cryptos faced the wrath of bears this past week, Arbitration [ARB] has become somewhat bullish. However, there was more to the story as the token appears poised to break out above a bullish pattern, which could result in a double-digit price increase in the coming days to weeks.
Arbitrum turns bullish?
CoinMarketCaps facts revealed that ARB bulls have risen over the past 24 hours by marginally increasing the price of the token. At the time of writing, ARB was trading at $0.5019 with a market cap of over $1.75 billion.
The bad news was that 0% of ARB investors made a profit InTheBlok. However, the trend may change in the coming days.
AMBCrypto’s analysis showed that long-term holders, investors who had owned a token for more than a year, rose slightly, reflecting their confidence in a price increase.
Source: IntoTheBlock
The better news was that the token’s price was moving within a bullish pattern. World Of Charts, a popular crypto analyst, posted a tweet revealing a bullish falling wedge pattern.
At the time of writing, it was on the verge of a breakout, which could result in a 25% price increase. A bullish divergence even appeared on one of the technical indicator’s charts, further indicating a bullish breakout.
Source:
Charting ARB’s path forward
We then reviewed the token’s on-chain data to see what metrics suggested a bullish breakout. According to our analysis of Santiment’s data, Arbitrum’s MVRV ratio has improved.
Apart from that, the token’s network growth also peaked sharply on September 6. An increase in the statistic means that more new addresses have been created.
Source: Santiment
However, Coinglass’ facts displayed a bearish signal. According to the data, Arbitrum’s long/short ratio showed a decline. This meant that there were more short positions in the market than long positions, which can be inferred as a bearish signal.
Therefore, we checked the token’s daily chart to better understand whether a bullish breakout is possible.
Realistic or not, here it is The market capitalization of ARB in terms of BTC
We found that most market indicators were bullish on the token. For example, Arbitrum’s Chaikin Money Flow (CMF) recorded an increase.
The Relative Strength Index (RSI) also followed a similar trend. These meant that the chances of a price increase, which could result in a bullish breakout, were high.
Source: TradingView