Arbitrum Price Could Rebound As Stablecoin Adoption Surges

Key Insights:

• Arbitrum price formed a rare double-bottom pattern on the daily chart.
• Data shows that stablecoin adoption has jumped to a record high.
• Robinhood selected Arbitrum as its layer-2 chain for tokenized stocks trading.

Arbitrum price could be on the verge of a strong bullish breakout after forming a double-bottom pattern, and as its ecosystem growth continues. The ARB token was trading at $0.3285 on Monday, a few points above the double-bottom level at $0.2490.

Arbitrum Price Double-Bottom Pattern Signals a Rebound May Be Coming

The daily timeframe shows that the Arbitrum token remains in a bear market after plunging by 75% from its November 2024 high. This crash could be about to come to an end after Arbitrum price formed a highly bullish double-bottom pattern at $0.2490.

The Double Bottom pattern is a bullish reversal pattern, comprised of two distinct bottoms and a neckline. The neckline in this case is $0.5050, the highest swing in May this year.

Additionally, the two lines of the Percentage Price Oscillator (PPO) have formed a bullish crossover pattern and were nearing the zero line at press time.

The PPO is a unique form of MACD, with the only difference being that it uses the exponential moving averages (EMA), while the MACD uses the simple average.

Meanwhile, the Relative Strength Index (RSI) has pointed upwards and moved above the neutral level at 50. Therefore, the token could bounce back and possibly retest the double-top’s neckline at $0.5050.

It also coincides with the 23.6% Fibonacci Retracement level. This price target is about 58% above the current level.

A break above that resistance level will point to more gains, likely to the 50% retracement level at $0.7435. It is 130% above the current level. On the other hand, a drop below the double-bottom level will invalidate this pattern and point to more downside, potentially to $0.200.

Arbitrum Stablecoin Adoption is Surging

Arbitrum price has numerous catalysts that may push it higher in the coming months. One of them was noted by TokenTerminal, which pointed to a data point showing that stablecoin adoption on Arbitrum One rose to a record high.

It includes stablecoins natively minted on the network and those bridged to it, which have jumped to over $6 billion.

Stablecoins have become the fastest field in the crypto industry this year as more people embrace them for faster and lower-cost transactions.

For example, transaction costs through banks and fintech companies like PayPal can cost over 5% of the volume. A similar transaction through Arbitrum costs cents, and the funds arrive immediately.

Artemis data shows that the adjusted stablecoin transaction volume on Arbitrum stood at over $35 billion in the last days. The stablecoin supply in the network rose by 3% to $6.7 billion, while the transaction count stood at 26.1 million.

Arbitrum Price to Benefit from RWA and DEX Volume

The ARB price has more bullish catalysts. For example, it has become a major player in the Real World Asset (RWA) tokenization industry. Data shows that there are 106 RWA projects in its ecosystem, while the total value locked has jumped by over 14% in the last 30 days to $286 million.

This growth will likely accelerate in the coming months as Robinhood launches over 200 tokenized stocks using its chain. This project will be one of the best use cases for the RWA industry since Robinhood is one of the biggest fintech companies globally.

Arbitrum price will also benefit from the ongoing market share in the decentralized exchange (DEX) industry. In the DEX industry, it handled over $24 billion in volume in June and has already handled $1.3 billion this month.

Can Arbitrum Price Rebound?

Arbitrum price has crashed this year, erasing billions of dollars in value. This decline is primarily because of the ongoing altcoin crash that has affected even those with significant utility. It also dropped likely because of the regular token unlocks.

Still, there are chances that the ARB token will rebound this year after forming the highly bullish double-bottom pattern and as its ecosystem growth continues.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.