Posted: November 18, 2024

• A rounded bottom pattern has emerged, with ARB targeting $2.42 after breaking $1.30 resistance.
• Market sentiment supported ARB’s bullish outlook, signaling sustained momentum.

Arbitrum [ARB] has been capturing a significant attention in the crypto market, fueled by its impressive price performance and increasing trading activity.

At press time, ARB is trading at $0.6947, marking an 11.29% increase over the past 24 hours. Its trading volume has also skyrocketed by 200% to $1.10 billion, reflecting strong interest from market participants.

However, the critical question remains—can ARB maintain its bullish momentum and surpass the $1.30 resistance, paving the way for a climb to $2.42?

Rounded bottom hints at potential rally

The weekly chart painted an optimistic picture with the appearance of a rounded bottom pattern, a strong indicator of a bullish reversal.

This pattern suggested that ARB could continue its upward trajectory, provided it clears the immediate resistance at $1.30. 

A decisive breakout above this level would likely attract additional buyers, propelling ARB toward its ambitious $2.42 target. Conversely, failure to breach $1.30 could signal a potential consolidation phase.

Arbitrum: Strengthening momentum

Momentum indicators further strengthened the bullish outlook for ARB.

The RSI on the daily chart was 57.37 at press time, which, while indicating bullish momentum, leaves room for more upward movement before reaching overbought territory. 

Similarly, the MACD showed a bullish crossover, with the MACD line firmly above the signal line. These metrics highlighted growing market optimism and suggested that buyers are gaining control.

However, any signs of weakening could result in a short-term pullback.

ARB on-chain signals reinforce bullish sentiment

On-chain signals largely support the bullish case for ARB.

The “in the money” metric, up 1.81%, reflected growing profitability for holders, while the 8.68% increase in large transactions indicated heightened activity from institutional investors or whales. 

However, the 0.71% decline in net network growth revealed some hesitation in onboarding new participants, which could pose a challenge to sustained growth.

Additionally, the 0.33% bullish concentration metric suggested continued accumulation by long-term holders, a positive sign for stability.

Will traders push ARB higher?

Sentiment data further emphasized cautious optimism. The Long/Short Ratio showed that 51.43% of traders had taken long positions at press time, signaling a slightly bullish tilt.

This suggested growing confidence in ARB’s ability to overcome resistance at $1.30.

Read Arbitrum’s [ARB] Price Prediction 2024–2025

Ultimately, ARB is well-positioned for further gains, supported by a rounded bottom pattern, bullish technical indicators, and mostly positive on-chain metrics.

However, breaking the $1.30 resistance is critical to confirming its upward momentum. If ARB can conquer this level, the $2.42 target could become a reality in the near future.