- ARB price has followed a similar fractal pattern to the September 2024 bullish breakout.
- The resurgence of crypto FOMO could trigger a parabolic rally for ARB price in the near future.
The gradual recovery of Ethereum (ETH), in the past few days beyond $1.7k, has reverberated in its layer two (L2) ecosystem, led by Arbitrum (ARM). The renewed altcoin interest by whale investors has rejuvenated bullish sentiment, as Bitcoin (BTC) price rebounded above the crucial support level of around $92k.
In the past seven days, ARB price has rallied over 18 percent to trade about 33 cents on Wednesday, April 23, during the mid-North American trading session. The large-cap altcoin, with a fully diluted valuation of about $3.3 billion and a 24-hour average trading volume of about $229 million, has been trapped in a multi-month falling trend.
What Next for ARB Price
After being trapped in a falling trend YTD, ARB price broke out of a falling logarithmic trend in the past few days, signaling a potential macro reversal. Furthermore, a similar reversal pattern occurred between September and November 2024 but was overshadowed by the YTD selloff.
With the daily Relative Strength Index (RSI) having rallied above the 50 percent level for the first time in 2025, it is safe to assume a reversal is imminent. Moreover, the daily MACD indicator is on the cusp of transitioning to bullish sentiment.
In case of further bullish sentiment, ARB price aims at 47 cents in the short term and $1.2 in the coming months.
Closer Look at Arbitrum’s Fundamentals
The Arbitrum network has grown into a vibrant web3 ecosystem on the Ethereum blockchain in the past year. As of this writing, dozens of DeFi protocols have already deployed on the Arbitrum network, thus its total value locked (TVL) hovering at about $2.22 billion and its stablecoins market cap at around $2.86 billion.
The Arbitrum network has, however, faced intense competition from Coinbase Global-backed Base in the recent past. According to market data from Defillama, Base Network has a TVL of about $2.7 billion and a stablecoins market cap of around $4.11 billion.
Credit: Source link