ARB Price Riding BTC Wave: Will It Break-Free From Long-Term Fall?

• The 20-day and 50-day EMA bands have been easily breached, indicating bullish sentiment.
• ARB’s derivatives market has shown substantial growth, reflecting increasing demand.
• On-chain metrics suggest a positive outlook despite most holders being out of the money.

Over the past two weeks, Arbitrum (ARB) has remained in the green, benefiting from Bitcoin‘s nearly 20% surge. This week alone, the BTC price increased by 11.5%, thanks to the recent Fed rate cut.

This optimism has driven the ARB price up by 13% this week. The token’s price movement has closely mirrored Bitcoin’s sentiment, with a correlation of 0.82.

This week’s strong momentum has effortlessly moved the ARB price through the 20-day and 50-day EMA bands. The short-term momentum has shifted in the bull’s favor. However, the 200-day EMA band remained the hurdle.

Read on for more insights on whether ARB crypto will break out of its lower-low trend in the long term.

Intraday ARB Price Analysis on Spot & Derivatives

The recent Arbitrium price surge has propelled its rank to 41st intraday, with a nearly 7% increase. This pushed its market cap to $2.104 Billion, up from this week’s low of $1.74 Billion.

This growth has been driven by positive Fed news and Bitcoin’s upward momentum. It has also positively impacted high-cap altcoins.

ARB crypto has experienced a 25% rise in 24-hour volume, reaching $247.29 Million. This increase highlights growing demand in spot sessions, with a volume-to-market cap ratio of 11.45%. It indicated increased liquidity.

Similarly, according to Coinglass, the derivatives market for ARB crypto has shown optimism alongside the spot market.

Over the past 24 hours, derivatives volume increased by 51.23%, bringing the total traded value to $241.78 Million. This reflected the growing demand for ARB in the derivatives market.

ARB’s OI-weighted funding rates have shown an increase in bullish sentiment, currently at 0.0113%. This signaled a shift toward market optimism. ARB’s open interest rose to $121.03 Million, a 12.70% increase from the previous session.

These metrics highlighted a growing bullish sentiment for the ARB price. It suggested that continued optimism could lead to further price increases.

What Does On-chain Signify in ARB Price Analysis?

An analysis of global ARB crypto holders revealed significant losses, with only 5.90% of holders currently in profit. On the other hand, a substantial 91.66% experienced losses (“out of the money”).

Despite these losses, holder confidence remains strong, as evidenced by continued accumulation. The total number of addresses with a balance has increased from 1.21 million last month to 1.24 million.

ARB crypto saw 17.64K active addresses this week and increased transaction volume and count. It indicated heightened trading activity.

Additionally, the number of addresses holding ARB for over a year has risen to 390.62K. It showed an upward trend from last month. Large transaction frequency also increased, with 125 transactions this week compared to a low of 51 transactions earlier.

These metrics suggested a positive outlook for ARB crypto, with the potential for future price appreciation.

Decoding What’s Next To Come In ARB Price In 2024?

The ARB price peaked in Q1 2024 after finding support in Q4 2023. Despite multiple attempts to rise in Q1, supply pressures dominated. The peak of $2.4072 led to a continuous decline through Q2 and Q3 2024. It reached a low of $0.4286 by August 5th, 2024.

However, the price stabilized and didn’t fall further. In the short term, Q3’s price action formed a bullish descending triangle pattern, which recently broke out due to market optimism.

ARB’s price prediction highlighted that, in the short term, it could move toward the 200-day EMA. The 20-day and 50-day EMAs supported it. Short-term targets were $0.6500 and $0.8800.

If the price sustains above the 200-day EMA and surpasses these short-term targets, a long-term bullish trend could develop. It would aim for $1.25, $1.55, and $1.90.

On the contrary, the ARB price may consolidate or turn bearish if short-term targets are unmet. Monitoring the change of character phenomenon is crucial to building confidence. Investors should avoid FOMO and conduct their own research (DYOR).

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.