After a month of sluggish performance, Arbitrum (ARB), the native token of the Ethereum layer-2 network, is showing signs of decoupling from the broader market weakness.
ARB has been grappling with declining prices, mirroring the struggles of Ethereum (ETH). However, recent on-chain data suggests a potential shift in sentiment.
Holding Time Surges, Indicating Diminishing Selling Pressure
One key indicator is the surge in ARB’s holding time. This metric measures how long coins are held without being traded. A significant increase in holding time suggests that investors are holding onto their ARB, anticipating potential price appreciation. This aligns with data from IntoTheBlock, which shows a notable rise in ARB’s holding time, indicating a decrease in selling pressure.
Social Dominance on the Rise
Furthermore, Santiment data reveals a growing social dominance for ARB. This metric measures the level of discussion around a cryptocurrency relative to other top 100 cryptocurrencies. A rising social dominance indicates increased market attention and potential growing demand. ARB’s social dominance has climbed to 0.80%, suggesting a surge in interest.
Technical Analysis Points to Potential Bullish Reversal
Technically, ARB’s price has formed a falling wedge on the daily chart, a bullish pattern that typically precedes a price breakout. This pattern suggests a narrowing price range followed by a potential upward move.
Based on this analysis, ARB could potentially retest the $1 mark, reaching the 0.786 Fibonacci level. A sustained increase in buying pressure could even propel ARB towards $1.24. However, a break below the $0.65 support level could invalidate this bullish outlook.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Arbitrum (ARB) Eyes 46% Rally: Traders Watch Key Support and Breakout Potential
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